The Chained Consumer Price Index

question 17

Multiple Choice

The chained consumer price index

• A) assumes that households purchase the same bundle of goods and services over a lengthy time period.
• B) adjusts the quantities of the typical bundle purchased each month to reflect the substitution away from goods that have become more expensive.
• C) reflects changes in the prices of all final goods and services produced domestically by the citizens of a nation during a period.
• D) will generally result in a higher measured rate of inflation than the regular consumer price index.

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