An Advantage of the Personal Consumption Expenditures Price Index (PCE)over

question 114

Multiple Choice

An advantage of the personal consumption expenditures price index (PCE) over the Consumer Price Index (CPI) as a measure of inflation is that the PCE

• A)includes the prices of more consumer goods and services.
• B)includes the prices of consumer goods,but not consumer services.
• C)includes the prices of consumer services,but not consumer goods.
• D)is a fixed market-basket price index that does not allow the mix of products to change each year.

---

Definitions:

Metabolism

The set of life-sustaining chemical reactions in organisms that enable them to grow, reproduce, maintain their structures, and respond to their environments.

Thyroid Gland

An endocrine gland in the neck that produces hormones regulating growth and metabolism.

Pain Relief

The alleviation or reduction of pain through medication, therapy, or other medical interventions.

Endorphins

Natural, pain-relieving chemicals produced by the body that also promote feelings of pleasure or euphoria.