Which of the Following Statements Is True

question 70

Multiple Choice

Which of the following statements is true?

• A)The CPI is based on a fixed quantity of goods and services in the base year.
• B)The CPI measures the price of all goods and services included in GDP.
• C)Services are excluded from the CPI.
• D)The CPI is a by-product of computing GDP.
• E)The CPI does not hold the quantity of goods and services constant when computing the price level.

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Definitions:

Randomly Assigned

Random assignment is a method used in experiments to place participants into different groups using randomization, which helps ensure that each group is similar at the start of the experiment.

Experimental Group

In an experiment, the group that is exposed to the treatment, that is, to one version of the independent variable.

Independent Variable

A factor in a scientific study that is manipulated or changed to observe its effects on the dependent variable.

Cause-Effect Relationships

The principle stating that every effect in the natural world has a specific cause, and every cause leads to a specific effect.