Question

which of these indicators best indicates the changes in price levels over time? unemployment rate consumer price index real gross domestic product nominal gross domestic product

Explanation:

• Unemployment Rate measures joblessness, not price levels.
• Consumer Price Index (CPI) tracks the average change over time in prices paid by consumers for a basket of goods and services, directly reflecting price level shifts.
• Real GDP adjusts for inflation to measure economic output, not price changes themselves.
• Nominal GDP measures output at current prices but does not isolate price level changes.

Answer:

B. Consumer Price Index