The Chained Consumer Price Index (CPI)tends to Be

question 140

Multiple Choice

The chained consumer price index (CPI) tends to be

• A) a better measure of prices than the traditional CPI,no matter what the circumstances.
• B) a better measure of prices than the traditional CPI,but only if inflation is relatively high.
• C) a better measure of prices than the traditional CPI,but only if inflation is relatively low.
• D) equally as good as the traditional CPI,under all conditions.
• E) a poor measure of prices but better than the gross domestic product (GDP)deflator.

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Definitions:

Consumers

Individuals or groups who purchase goods and services for personal use or consumption.

Climate Change

is the long-term alteration of temperature and typical weather patterns in a place, largely attributed to human activities such as burning fossil fuels.

World Wide Fund

An international non-governmental organization working on issues regarding the conservation, research, and restoration of the environment, commonly known by its initials WWF.

Fear

An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.