Related to the Economics in Practice on p.451: If a retiree's pension is tied to the CPI,her monthly pension check would tend to grow ________ if the pension is tied to the ________ CPI.

Question

Quizplus · Accepted Answer

A chain-linked CPI accounts for changes in consumer behavior and substitution between goods, typically resulting in a lower inflation rate compared to a fixed-weight CPI. Therefore, a pension tied to a chain-linked CPI would grow slower.

Related to the Economics in Practice on P