The Basket of Goods in the Consumer Price Index Changes

question 111

Multiple Choice

The basket of goods in the consumer price index changes

• A)occasionally,as does the group of goods used to compute the GDP deflator.
• B)automatically,as does the group of goods used to compute the GDP deflator.
• C)occasionally,whereas the group of goods used to compute the GDP deflator changes automatically.
• D)automatically,whereas the group of goods used to compute the GDP deflator changes occasionally.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of values around the mean.

Unanticipated Rate

A rate of change in prices or interest that market participants did not expect, often influencing investment decisions and economic forecasts.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be avoided through diversification.

Asset-specific Risk

The risk that affects the value of a particular asset, such as changes in its market or sector, distinct from market-wide risk.