Title: The Fed uses a "core" price index, one that excludes food and energy prices to measure inflation. It Post by: Tidy on Jun 22, 2015 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 are inelastic goods and consumers will buy them regardless of their price. B) it wants to avoid the blame for high gasoline prices causing inflation. C) food and energy prices have wide swings that are not related to the causes of general inflation. D) food and energy prices do not change all that much during the short run, so are irrelevant to the calculation of inflation. Title: Re: The Fed uses a "core" price index, one that excludes food and energy prices to measure inflation Post by: Sydnie on Jul 5, 2015 Content hidden
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