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Compared to the Inflation Rate Calculated Using the Consumer Price

Question 119

Multiple Choice

Compared to the inflation rate calculated using the Consumer Price Index (CPI) , the core inflation rate


A) measures the prices of all products and services, not just those in the CPI basket.
B) includes the volatile categories missing from the CPI basket.
C) excludes the volatile categories from the CPI basket.
D) is always lower.
E) allows quantities to change in the basket of products and services.

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