Praxis 5511 Practice Test Practice Question
Which of the following is most useful in keeping track of the rate of inflation?
Correct Answer: C
Rationale: The Consumer Price Index (CPI) is essential for tracking inflation as it measures the average change over time in the prices paid by consumers for a basket of goods and services. This direct correlation with consumer spending makes it the most relevant option.
Gross Domestic Product (GDP) reflects overall economic activity but does not specifically measure price changes. The unemployment rate indicates labor market health, not inflation. The Dow Jones Industrial Average tracks stock market performance, which can be influenced by inflation but does not provide a direct measure of price changes in consumer goods.
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