Which Price Index Tends to Be the Most Volatile Over

question 63

Multiple Choice

Which price index tends to be the most volatile over time?

• A) CPI
• B) PCE
• C) PPI
• D) GDP deflator

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Definitions:

Surplus

An excess of what is needed, often referring to goods, funds, or resources beyond what is used.

Tariff

A levy placed by the government on goods being imported or exported.

Consumer Surplus

The distinction between the theoretical spending capacity of consumers on a good or service and their actual spending.

Trade

The exchange of goods, services, or both between two or more parties, either domestically or internationally.