The main drawback of the chained consumer price index (CPI)compared to the traditional CPI is that the chained CPI
A) only includes final goods and services.
B) is not updated as frequently.
C) is more difficult to calculate.
D) underestimates true inflation.
E) overestimates true inflation.

Question

Quizplus · Accepted Answer

The chained CPI is more difficult to calculate because it accounts for changes in consumer behavior and substitution between goods, requiring more complex data collection and analysis.

The Main Drawback of the Chained Consumer Price Index (CPI)compared