The price indexes that are alternatives to the CPI are
A)the GDP deflator and the chained price index for consumption.
B)the chained price index for consumption and the CPI deflator.
C)the core GDP deflator and the CPI deflator.
D)the GDP deflator and the CPI deflator.
E)the unbiased CPI and the unbiased GDP deflator.

Question

Quizplus · Accepted Answer

The GDP deflator and the chained price index for consumption are two popular alternatives to the CPI. The GDP deflator is a broader measure of inflation that accounts for changes in prices of all goods and services produced domestically, while the chained price index for consumption is a more accurate measure of inflation for consumer goods because it accounts for changes in consumer behavior and the introduction of new products.

The Price Indexes That Are Alternatives to the CPI Are