What Is the Difference Between the CPI and the GDP

question 59

Multiple Choice

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

• A) The CPI does not include capital goods but the chain index does.
• B) The CPI basket includes fewer goods and services than the GDP chain index basket.
• C) The CPI basket includes imported goods while the GDP chain index does not.
• D) All of the above are correct.

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Definitions:

Gas Prices

The cost per unit volume of gasoline, a significant indicator of both energy market conditions and economic factors affecting transportation costs.

Fuel-Efficient Aircraft

Fuel-efficient aircraft are planes designed with advanced technologies and materials to minimize fuel consumption, thus reducing operating costs and environmental impact.

Inflation

The rate at which the cost of goods and services across the board escalates, leading to a fall in the buying power of currency.

Living Standards

The volume of capital, pleasantries, commodities, and indispensable resources available to a defined economic group or territorial area.