The Fed uses a "core" price index, one that excludes food and energy prices to measure inflation. It does so because
A) food and energy have inelastic demand curves and consumers will buy them regardless of their price.
B) food and energy prices have wide swings that are not related to the causes of general inflation.
C) food and energy prices do not change all that much during the short run, so are irrelevant to the calculation of inflation.
D) it wants to avoid the blame for high gasoline prices causing inflation.
B
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When there is a change in one market, _______________ are effected
Fill in the blank(s) with the appropriate word(s).
When a Japanese automaker makes a profit on a plant located in the United States, this enters into the U.S. balance of payments in the category of
a. merchandise exports b. merchandise imports c. income receipts on foreign investments d. income payments on foreign investments e. unilateral transfers