Question

matching 1 point how is inflation measured? inflation can be measured. the bureau of labor statistics (bls) measures inflation by using what is called the consumer price index (cpi). the cpi measures the price change of a selected group of consumer goods and services overtime. to do this, economists select hundreds of goods and services they feel are important and are representative of our economy. these selected goods and services are then put together in what is referred to as the \market basket.\ each month, the cost of this market basket is compared to past months and years. economists check to see if the total cost of the basket goes up or down. by comparing the price change of the market basket over a period of time, we can determine the rate of inflation or deflation. for example, if the price of the market basket increased by 10% in one year, then it would mean that the annual inflation rate was 10%. monthly, the bureau of labor statistics reports the cpi. select the best term from the right. to measure inflation, the consumer price index uses a ____. by comparing the price change of the market basket over a period of time, we can determine the rate of __ or deflation. the bureau of labor uses the __ in an effort to measure inflation. the market basket used by economists to measure inflation include hundreds of __ and ____ economists feel represent of our economy.

Explanation:

To solve this matching problem about inflation measurement, we analyze each blank based on the provided text:

1. "To measure inflation, the Consumer Price Index uses a ______."

From the text: "economists select hundreds of goods and services they feel are important and are representative of our economy. These selected goods and services are then put together in what is referred to as the 'market basket'." So the answer is market basket.

2. "By comparing the price change of the market basket over a period of time, we can determine the rate of ______ or deflation."

The text states: "we can determine the rate of inflation or deflation" (since inflation is a general price increase, deflation a decrease). So the answer is inflation.

3. "The Bureau of Labor uses the ______ in an effort to measure inflation."

From the text: "the Bureau of Labor Statistics (BLS) measures inflation by using what is called the Consumer Price Index (CPI)" and "Each month, the cost of this market basket is compared to past months and years" (the CPI uses the market basket). So the answer is Consumer Price Index (CPI) (or "CPI" for short, but the full term matches the context).

4. "The market basket used by economists to measure inflation include hundreds of ____ and ____."

The text says: "economists select hundreds of goods and services they feel are important and are representative of our economy". So the blanks are goods and services (in either order, but "goods" first then "services" matches the text’s phrasing).

Final Answers (filled in order of the blanks):

1. market basket
2. inflation
3. Consumer Price Index (CPI)
4. goods; services (or "services; goods" but "goods" then "services" aligns with the text)

Answer:

To solve this matching problem about inflation measurement, we analyze each blank based on the provided text:

1. "To measure inflation, the Consumer Price Index uses a ______."

From the text: "economists select hundreds of goods and services they feel are important and are representative of our economy. These selected goods and services are then put together in what is referred to as the 'market basket'." So the answer is market basket.

2. "By comparing the price change of the market basket over a period of time, we can determine the rate of ______ or deflation."

The text states: "we can determine the rate of inflation or deflation" (since inflation is a general price increase, deflation a decrease). So the answer is inflation.

3. "The Bureau of Labor uses the ______ in an effort to measure inflation."

From the text: "the Bureau of Labor Statistics (BLS) measures inflation by using what is called the Consumer Price Index (CPI)" and "Each month, the cost of this market basket is compared to past months and years" (the CPI uses the market basket). So the answer is Consumer Price Index (CPI) (or "CPI" for short, but the full term matches the context).

4. "The market basket used by economists to measure inflation include hundreds of ____ and ____."

The text says: "economists select hundreds of goods and services they feel are important and are representative of our economy". So the blanks are goods and services (in either order, but "goods" first then "services" matches the text’s phrasing).

Final Answers (filled in order of the blanks):

1. market basket
2. inflation
3. Consumer Price Index (CPI)
4. goods; services (or "services; goods" but "goods" then "services" aligns with the text)