The Chained Consumer Price Index (CPI) Is a Better Measure

question 109

Multiple Choice

The chained consumer price index (CPI) is a better measure of prices than the traditional CPI:

• A) because it contains producer prices, not just consumer prices.
• B) because it adjusts for price changes less frequently but across more goods.
• C) because it adjusts for price changes more often, especially when new goods are introduced, which is important because new products' prices tend to fall soon after introduction.
• D) because the chained index is called "chained" because it includes industrial goods that are not included in the traditional CPI.
• E) because while omitting producer prices, it includes substitution between goods as relative prices change.

---

Definitions:

Menopause

The period marking the end of a woman's reproductive years, characterized by the cessation of menstruation.

Perimenopause

The transitional phase leading up to menopause, marked by changes in menstrual cycles and symptoms like hot flashes.

Menopause

The time in a woman's life, typically between ages 45 and 55, when her menstrual periods cease permanently, and she can no longer conceive naturally.

Life Transition

A period or phase in a person's life involving significant change or transformation in status, roles, or activities.