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      Question

      Which of the following is a measure of

      inflation?
      A Gross Domestic Product Correct Answer Incorrect Answer
      B Consumer Price Index Correct Answer Incorrect Answer
      C Fiscal Deficit Correct Answer Incorrect Answer
      D Current Account Deficit Correct Answer Incorrect Answer
      E Foreign Exchange Reserves Correct Answer Incorrect Answer

      Solution

      The Consumer Price Index (CPI) measures the average change in prices over time that consumers pay for a basket of goods and services and is a key indicator of inflation.

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