Which of the Following Correctly Shows the Steps Needed to Calculate

Multiple Choice

Which of the following correctly shows the steps needed to calculate the inflation rate?

A) Find the total value of the basket of goods and services, assess quality changes from one period to the next, and measure the inflation rate.
B) Tally up the cost of the basket of goods and services, subtract the value of goods and services that are no longer counted in the basket, and then calculate the inflation rate.
C) Find out what people typically buy, collect the prices from the stores where people shop, tally up the cost of the basket of goods and services, and calculate the inflation rate.
D) Collect prices from the stores where people shop, assess the substitution that people make from low inflation to high inflation products, and calculate the difference in the prices that people pay.