Alternative measures of the price level aim to improve on the CPI. Which of the following statements is true? A. The CPI, C-CPI, and the PCEPI do not move together. B. The PCEPI excluding food and energy fluctuates more than the PCEPI and the CPI. C. The PCEPI uses current quantities so it avoids the sources of bias in the CPI. D. The CPI and the C-CPI can be used to measure inflation. The PCEPI cannot be used to measure inflation.
Alternative measures of the price level aim to improve on the CPI. Which of the following statements is true? A. The CPI, C-CPI, and the PCEPI do not move together. B. The PCEPI excluding food and energy fluctuates more than the PCEPI and the CPI. C. The PCEPI uses current quantities so it avoids the sources of bias in the CPI. D. The CPI and the C-CPI can be used to measure inflation. The PCEPI cannot be used to measure inflation.
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 17P
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Alternative measures of the price level aim to improve on the CPI. Which of the following statements is true?
The CPI, C-CPI, and the PCEPI do not move together.
The PCEPI excluding food and energy fluctuates more than the PCEPI and the CPI.
The PCEPI uses current quantities so it avoids the sources of bias in the CPI.
The CPI and the C-CPI can be used to measure inflation. The PCEPI cannot be used to measure inflation.
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