The Chain-Weighted Index for GDP and the CPI Differ in That

question 21

Multiple Choice

The chain-weighted index for GDP and the CPI differ in that the CPI

• A) excludes price changes from used and imported goods while the chain-weighted index includes these price changes.
• B) asks how much a fixed basket of goods costs in the current year as compared to the cost of those same goods in a base year while the chain-weighted index takes an average of price changes using base years from neighboring years.
• C) is calculated by the Commerce Department while the chain-weighted index is calculated by local newspapers.
• D) is calculated in nominal terms and the chain-weighted index is calculated in real terms.

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