One Improvement of the Chained Consumer Price Index (CPI) Over

Multiple Choice

One improvement of the chained consumer price index (CPI) over the traditional CPI is that:

A) the chained CPI more quickly takes into account new goods.
B) the chained CPI accounts for substitution between goods.
C) the chained CPI is "progressive," whereas the traditional CPI is "regressive."
D) the traditional CPI measures Engle's law but ignores the Paasche effect, which is included in the chained CPI.
E) The chained CPI more easily accounts for deflation.