To Measure the "Core" Inflation Rate, the Bureau of Economic

question 31

Multiple Choice

To measure the "core" inflation rate, the Bureau of Economic Analysis uses a price measure that:

• A) excludes food and energy prices because the prices of these items can be volatile.
• B) includes food and energy prices because these items account for a significant portion of the typical consumer's expenditures.
• C) excludes non-durable goods and services since their consumption value decreases over time.
• D) excludes prices for most components of personal consumption expenditures.

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Definitions:

Punishment

A consequence that reduces the likelihood of a behavior being repeated, usually by introducing an unpleasant response or removing a desirable outcome following an undesirable behavior.

Positive Reinforcement

A technique in behavior modification that involves the introduction of a desirable stimulus after a behavior to increase the likelihood of that behavior being repeated.

Learned Helplessness

A psychological condition where an individual learns to feel powerless and unable to avoid negative situations due to previous experiences of failure to do so.

Shocks

Sudden and often violent disturbances or fluctuations in physical or emotional states, or electrical discharges used in medical therapy or experimental research.