Related to the Economics in Practice on p. 543: Which measure of the aggregate price level does the Fed consider the most important?
A) the Core PCE
B) the CPI
C) the GDP deflator
D) the PPI

Question

Quizplus · Accepted Answer

The Fed considers the Core PCE (Personal Consumption Expenditure Price Index) to be the most important measure of the aggregate price level as it reflects the prices paid by consumers for goods and services, which make up a significant portion of the economy. It also excludes volatile food and energy prices, making it a more stable measure of inflation.

Related to the Economics in Practice on P