Since 2000,the Fed uses ________ to measure inflation.
A)the index of leading economic indicators
B)the personal consumption expenditures index
C)the consumer price index
D)the GDP deflator
E)the producer price index

Question

Quizplus · Accepted Answer

The Fed began using the personal consumption expenditures (PCE) index as the preferred measure of inflation in 2000. This index measures the price changes of goods and services that are included in personal consumption expenditures, which includes a broader range of goods and services than the consumer price index (CPI). The Fed uses the PCE index to inform its monetary policy decisions.

Since 2000,the Fed Uses ________ to Measure Inflation