Comparing the core inflation rate to the Consumer Price Index, the core inflation rate
A)excludes the volatile elements of the CPI.
B)controls for the biases of the CPI.
C)uses current period quantities, not base period quantities.
D)measures all goods produced, not just consumer goods.

Question

Quizplus · Accepted Answer

The core inflation rate excludes volatile items like food and energy prices from the Consumer Price Index to provide a clearer view of long-term inflation trends.

Comparing the Core Inflation Rate to the Consumer Price Index