If We Compare the Last 30 Years of Inflation as Recorded

question 245

Multiple Choice

If we compare the last 30 years of inflation as recorded by the CPI and the PCE price index,we find that the

• A)two measures fluctuate together.
• B)CPI inflation rate has consistently been at least 5 percentage points above the PCE price index inflation rate.
• C)PCE price index inflation rate has consistently been at least 5 percentage points above the CPI inflation rate.
• D)two measures give very different inflation rates for most years.
• E)the CPI inflation rate was always positive,but the PCE price index inflation rate was frequently negative.

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Definitions:

Poverty

A condition where a person or community lacks the financial resources and essentials for a minimum standard of living.

Population Growth

A growth in the population size over a designated time frame.

Death Rates

An index reflecting the total number of fatalities within a specific group, adjusted for its size, over a given period.

Birth Rates

The number of live births per thousand people in a population in a given year.