If We Compare the CPI to a Perfect Cost of Living

Multiple Choice

If we compare the CPI to a perfect cost of living index, we find that they are

A) the same thing.
B) different because the CPI uses a fixed basket and has some measurement difficulties.
C) different because the cost of living has nothing to do with prices.
D) different because the CPI does not measure prices.
E) not the same because the CPI has a fixed reference base period.