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

question 114

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)includes the prices of more consumer goods and services.
• B)includes the prices of consumer goods,but not consumer services.
• C)includes the prices of consumer services,but not consumer goods.
• D)is a fixed market-basket price index that does not allow the mix of products to change each year.

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Definitions:

Agriculture

The practice of cultivating the land and raising livestock for food, fiber, and other products.

Plantation Mansion

A large house on a plantation, typically in the American South, which was the residence of the plantation owner and served as the administrative center of the estate.

Slave Patrols

Organized groups of white men who monitored and enforced discipline upon black slaves in the antebellum Southern United States.

Southern Hill Country

A region typically characterized by its hilly terrain located in the southern parts of countries, which may have distinct cultural or environmental attributes.