If We Compare the Last 30 Years of Inflation as Recorded

question 245

Multiple Choice

If we compare the last 30 years of inflation as recorded by the CPI and the PCE price index,we find that the

• A)two measures fluctuate together.
• B)CPI inflation rate has consistently been at least 5 percentage points above the PCE price index inflation rate.
• C)PCE price index inflation rate has consistently been at least 5 percentage points above the CPI inflation rate.
• D)two measures give very different inflation rates for most years.
• E)the CPI inflation rate was always positive,but the PCE price index inflation rate was frequently negative.

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Definitions:

Unconditioned Stimulus

An innate trigger that spontaneously and effortlessly evokes a reaction without the need for previous learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, comes to trigger a conditioned response.

Conditioned Stimulus

A formerly neutral signal that, after consistent association with an unconditioned stimulus, triggers a learned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior conditioning.