True or False:
1. Since the development of the index of leading economic indicators, it has never failed to give some warning of an economic downturn.
2. The lead time between a change in the index of economic indicators and changes in business conditions has varied widely.
3. A price index can be used to deflate current dollar GDP to real GDP expressed in dollars of constant purchasing power.
4. The consumer price index measures the average level of prices of all final goods and services produced in the economy.
5. Our ability to calculate inflation accurately is complicated by changing qualities of goods and services over time and the creation of new products.
6. Many factors can potentially distort the CPI.
7. One benefit from chain weighting is that it reduces the upward bias of a price index.
8. The PPI is often useful in predicting changes in the CPI.
9. A Porsche produced in Germany and purchased in the United States would show up in the GDP deflator but not in the CPI.