I'm studying economics, but I'm having trouble understanding the concepts. Based on this graph http://www.newyorkfed.org/education/highschool/fred_charts.html#headlinecpiandpce ,
Which measure is higher right now: headline or core inflation? What does that tell you about food and energy inflation?
and
Are these measures consistent with indicators of the output gap? Explain.
I appreciate anyone that tries to help. Thank you
Which measure is higher right now: headline or core inflation? What does that tell you about food and energy inflation?
and
Are these measures consistent with indicators of the output gap? Explain.
I appreciate anyone that tries to help. Thank you