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the cpi (consumer price index) measures ________________ and ________________.

 

A.inflation and deflation; excludes energy and food as part of the market basket of goods and services that it measures

B.inflation; excludes apparel, health care, and education

C. rising and falling prices of goods, but not services; provides a 10-year comparison

D. inflation and deflation; includes energy and food as part of the market basket of goods and services that it measures

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Darryn D'Souza
Darryn D'SouzaLv10
27 Aug 2020

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Related questions

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 consumer goods, but not consumer services.

B) includes the prices of consumer services, but not consumer goods.

C) includes the prices of more consumer goods and services.

D) is a fixed market-basket price index that does not allow the mix of products to change each year

Choose the correct answer for the below question-

Which one of the following statements is true of the Consumer Price Index?

A. It does not take into account the price of used goods.

B. It measures changes in prices in a fixed basket of goods.

C. It does not take account of the price of imported goods and services.

D. It understates the true rate of inflation. 

 

1. The peak of the business cycle

a. usually occurs when the natural rate of unemployment is equal to its actual rate.

b. is the point where an expansion ends and a recession begins

c. is the minimum level of nominal GDP.

2. The consumer price index (CPI) reflects

a. the median annual expenditures of a typical single family of four on consumer goods

b. the average price of all goods and services computed from the ratio of nominal GDP to real GDP.

c. the changes in the prices of goods and services typically purchased by consumers.

3. The Consumer Price Index is NOT used

a. to measure the average price level of all final goods and services produced

b. to compute the U.S. inflation rate.

c. to measure changes in the cost of living

4. Which of the following is true of a price index that uses a fixed market basket?

a. It excludes new goods and services

b. It accurately predicts the impact of rising prices when purchases are made at superstores.

c. It overstates the importance of items that fall in price.

5. A quality-change bias in the construction of the CPI arises because

a. big box stores that carry electronic goods routinely run sales to reduce their inventories before stocking new models.

b. consumers also shop at superstores or outlet stores

c. newer versions of a product might be more expensive but could also be better than the older version.

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