CPI (consumer price index) and PCE (personal consumption expenditures) are used to gauge inflation. However, they differ in several ways, to include data sources and frequency. In addition, A) PCE is more comprehensive and includes all goods and services consumed in the U.S. whether they are purchased by consumers, or by employers or federal programs on behalf of consumers B) CPI uses fixed weights generated from a basket of goods that is updated every two years C) CPI is a portion of PCE and is used to adjust tax brackets and certain benefits D) A and B E) All of the above

CPI (consumer price index) and PCE (personal consumption expenditures) are used to gauge inflation. However, they differ in several ways, to include data sources and frequency. In addition, A) PCE is more comprehensive and includes all goods and services consumed in the U.S. whether they are purchased by consumers, or by employers or federal programs on behalf of consumers B) CPI uses fixed weights generated from a basket of goods that is updated every two years C) CPI is a portion of PCE and is used to adjust tax brackets and certain benefits D) A and B E) All of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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