What is the difference between the CPI and the GDP chain index?
A) The CPI includes capital goods but the chain index does not.
B) The CPI basket includes more goods and services than the GDP chain index basket.
C) The CPI includes a fixed basket of goods while the chain index does not.
D) The CPI measures price changes while the GDP chain index measures production changes.

Question

Quizplus · Accepted Answer

The CPI (Consumer Price Index) uses a fixed basket of goods and services to measure price changes over time, whereas the GDP chain index allows for changes in the basket of goods and services, reflecting changes in consumption and production patterns.

What Is the Difference Between the CPI and the GDP