An Advantage of the Personal Consumption Expenditures Price Index (PCE)over

question 258

Multiple Choice

An advantage of the personal consumption expenditures price index (PCE) over the Consumer Price Index (CPI) as a measure of inflation is that the PCE

• A)is a more narrow,focused measure of inflation.
• B)is a chain-type price index that allows the mix of products to change each year.
• C)includes the prices of industrial equipment.
• D)includes the prices of goods,but not services.

---

Definitions:

Accounting Firm

A business that provides services related to financial record keeping, audit, and taxation.

Seminar

An instructional event typically held to discuss or explore specific subjects or to provide training on a particular topic.

Partnership Act

Legislation that sets out the rights and obligations of partners in a partnership business structure.

Rights

Entitlements or permissions, either legal, social, or moral, that individuals have in a society.