What is the core inflation rate and how does it differ from the overall CPI inflation rate?
What will be an ideal response?
The core inflation rate is the rate of increase in the core PCE deflator. The core PCE deflator is the personal consumption expenditure deflator excluding food and fuel The Federal Reserve believes that food and fuel prices are more volatile than other prices and largely respond to factors other than the state of inflation in the general economy. Accordingly, the core inflation rate is smoother, that is, less volatile than the actual inflation rate.
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When deflation occurs,
A) the nominal interest rate is equal to the real interest rate and inflation is positive. B) the real interest rate is greater than the nominal interest rate. C) the nominal interest rate is equal to the real interest rate and inflation is negative. D) the nominal interest rate is greater than the real interest rate.
In most elections, _____ impedes political exchange
a. low transactions costs b. uncertainty c. the secret ballot d. special interests
The lack of long-term economic development in LDCs is evidence that economic markets fail to function efficiently
Indicate whether the statement is true or false
Neo-Keynesians view the Phillips curve as a permanent relationship, unchanging over time
Indicate whether the statement is true or false