One of the most damaging economic phenomena is a sustained high rate of inflation. That is why economists and the Federal Reserve closely watch:

A. cost levels
B. stock indexes
C. price indexes
D. export rates



Answer :

Final answer:

Inflation is a crucial economic concept measured by the consumer price index, with low rates being desirable for stability.


Explanation:

Inflation is a sustained increase in the overall level of prices, measured by the consumer price index. Economists aim for low inflation rates of 1-2% to maintain stability. High or unexpected inflation can have economic costs such as eroding purchasing power.


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