The Main Drawback of the Chained Consumer Price Index (CPI)compared

question 27

Multiple Choice

The main drawback of the chained consumer price index (CPI) compared to the traditional CPI is that the chained CPI

• A) only includes final goods and services.
• B) is not updated as frequently.
• C) is more difficult to calculate.
• D) underestimates true inflation.
• E) overestimates true inflation.

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Definitions:

Most People Believe

A phrase indicating a common or widespread opinion or perception among the general population.

Believe

To accept something as true, genuine, or real without absolute proof.

Appeal to Ignorance

A logical fallacy that claims a proposition is true because it has not yet been proven false, or vice versa.

Fallacy of Relevance

The basis of the argument is logically disconnected from, or not related to, the outcome.