The Federal Reserve Bank of St. Louis publishes PCE price index data on its Website at: https://research

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The Federal Reserve Bank of St. Louis publishes PCE price index data on its Website at: https://research .stlouisfed.org/fred2/categories/9. Go to this Web site and look at the 1-, 5-, and 10-year graphs for both “Personal Consumption Expenditures: Chain-type Price Index” and “Personal Consumption Expenditures Excluding Food and Energy (Chain-Type Price Index)”. Using the data represented in the graphs for these two PCE indexes, explain whether you believe the Fed obtains a more accurate representation of inflation and the state of the economy by concentration on the PCE index which excludes food and energy pricing.

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Principles of Macroeconomics

ISBN: 978-0134078809

12th edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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