Which of the Following Statements Regarding the Consumer Price Index

question 124

Multiple Choice

Which of the following statements regarding the consumer price index and the GDP deflator is correct?

• A)The two price measures are always equal.
• B)Divergence between the two price measures is the rule,not the exception.
• C)Divergence between the two price measures is the exception,not the rule.
• D)None of the above is correct.

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Definitions:

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Least Squares Regression

A statistical method used to find the best-fitting line through a set of points by minimizing the sum of the squares of the vertical distances of the points from the line.

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Sugar

A sweet-tasting, soluble carbohydrate found in many plants, which is commonly used as a sweetener in food.