The price indexes that are alternatives to the CPI include
A)the core GDP deflator and the CPI deflator.
B)the chained price index for consumption and the CPI deflator.
C)the unbiased CPI and the unbiased GDP deflator.
D)the GDP deflator and the chained price index for consumption.
E)the GDP deflator and the CPI deflator.

Question

Quizplus · Accepted Answer

The alternatives to the CPI include the GDP deflator and the chained price index for consumption. Both of these indexes are broader measures of price changes than the CPI, with the GDP deflator measuring price changes in all goods and services produced domestically and the chained price index for consumption measuring price changes for goods and services actually consumed by households. The core GDP deflator is also an alternative to the CPI, but it is only a subset of the GDP deflator that excludes the volatile food and energy sectors. The unbiased CPI and unbiased GDP deflator do not exist.

The Price Indexes That Are Alternatives to the CPI Include