SIE practice questionmediumEconomic Indicators
A significant rise in which economic indicator most likely signals higher inflation risk?
- AGross Domestic Product (GDP)
- BUnemployment rate
- CConsumer Price Index (CPI)✓ Correct answer
- DFederal funds rate
Explanation
Why C — Consumer Price Index (CPI)
CPI measures changes in consumer prices and is a key inflation indicator. Unemployment tracks joblessness, GDP economic output, and the federal funds rate is a short-term interest rate.
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