Which of the Following Is True About the Consumer Price

question 55

Multiple Choice

Which of the following is true about the consumer price index (CPI) and the GDP price index?

• A)Both measures weigh prices by quantities consumed in some base year.
• B)Both yield identical numbers for price level changes for any two years.
• C)Both CPI and GDP price index underestimate changes in the price level in an economy.
• D)The CPI measures changes in relative prices of goods,while the GDP price index measures changes in the absolute price level of a fixed basket of goods and services.
• E)CPI includes products that are widely used,while GDP price index includes all goods and services.

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Definitions:

Leaflets

Small, printed papers or pamphlets, often used for advertising or informational purposes.

Negligence

Failure to take reasonable care to avoid causing injury or loss to another person.

Breach Of Duty

The failure to perform a legal or moral obligation owed to a person or entity, leading to liability for the breach.

Fraudulent Misrepresentation

The act of deceiving another party through false statements or misrepresentations with the intent to gain unlawfully or induce the party into a contract.