The Principal Reason Why the Chain-Weighted Index for GDP and the CPI

question 37

Multiple Choice

The principal reason why the chain-weighted index for GDP and the CPI both overstate actual changes in prices is that

• A) it is hard to measure quality changes.
• B) the basket of goods purchased by consumers never changes.
• C) price data is often inaccurate.
• D) all of the above

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Definitions:

Contagious Viral Disease

An infectious disease caused by a virus that can be transmitted from person to person or animal to person.

Meningitis

Inflammation of the meninges of the brain and/or spinal cord.

Inflammation

A biological response to harmful stimuli, such as pathogens or damaged cells, characterized by redness, heat, swelling, and pain, serving as a protective mechanism to initiate healing.

Meninges

The membranes covering the brain and spinal cord.