One way the consumer price index (CPI)differs from the GDP chain price index is that it:
A)is based on all final goods and services.
B)uses only current-year quantities.
C)includes preferences of all consumers.
D)includes services.
E)includes purchases of items bought by typical urban consumers.

Question

Quizplus · Accepted Answer

The CPI is specifically based on the purchases of items bought by typical urban consumers, while the GDP chain price index uses all final goods and services regardless of who is purchasing them. Additionally, the CPI includes services while the GDP chain price index only includes goods.

One Way the Consumer Price Index (CPI)differs from the GDP