Multiple Choice
Which of the following statements would be true regarding different measurements of inflation in the U.S. since 2000?
A) The core PCE has tended to overstate the rate of inflation, while the sticky-price CPI and CPI have similar averages.
B) The sticky-price CPI has tended to understate the rate of inflation, while the CPI and core PCE have similar averages.
C) The sticky-price CPI has tended to overstate the rate of inflation, while the CPI and core PCE have similar averages.
D) The core PCE has tended to understate the rate of inflation, while the sticky-price CPI and CPI have similar averages.
Correct Answer:
Verified
Correct Answer:
Verified
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