One Advantage of Using the CPI Over the GDP Deflator

question 136

True/False

One advantage of using the CPI over the GDP Deflator is that the CPI updates the basket of goods used to compute the index each month whereas the GDP Deflator maintains the same basket of goods for long periods of time.​

---

Definitions:

SCHIP

The State Children's Health Insurance Program, which provides health coverage to uninsured children in families with incomes that are modest but too high to qualify for Medicaid.

Low-Income Families

Households earning significantly less income than the average, often struggling to meet basic needs.

Poverty Threshold

The bare minimum income needed to sustain an acceptable living standard within a particular country.

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, also catering to some younger individuals with certain disabilities.