The Core Inflation Rate, Measured by the Core PCE Deflator

question 48

Multiple Choice

The core inflation rate, measured by the core PCE deflator, measures changes in the

• A) price of only two consumer goods: food and fuel
• B) prices of consumer goods except health care.
• C) prices of all consumer goods
• D) prices of consumer goods except food and fuel.

---

Definitions:

Income From Operations

Earnings generated from a company's regular, core business operations, excluding deductions of interest and taxes.

Income From Operations

Revenue from a company's primary business activities, excluding costs and expenses.

Transfer Price

The price at which goods and services are transferred between departments or related entities within the same organization.

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials and labor costs.