What Is the Difference Between the CPI and the GDP

question 72

Multiple Choice

What is the difference between the CPI and the GDP chain index?

• A) The CPI includes capital goods but the chain index does not.
• B) The CPI basket includes more goods and services than the GDP chain index basket.
• C) The CPI includes a fixed basket of goods while the chain index does not.
• D) The CPI measures price changes while the GDP chain index measures production changes.

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Definitions:

Origin of the Shipment

Refers to the initial location or country from which a shipment of goods starts its journey to the buyer.

Nonferrous Metal

Metals that do not contain a significant amount of iron. This category includes aluminum, copper, lead, nickel, tin, titanium, and zinc among others.

Fly

A term that can refer to the act of moving through air using wings or through travelling by airplane, often unrelated to direct business terminology.

Ferrous Metal

Metals that contain iron. They are known for their strength and are widely used in construction, automotive, and other heavy industries.