The consumer price index (CPI) is calculated
a. using a fixed basket of goods and, therefore, will tend to understate inflation.
b. using a fixed basket of goods and, therefore, will tend to overstate inflation.
c. using a constantly changing basket of goods and, therefore, will tend to understate inflation.
d. using a constantly changing basket of goods and, therefore, will tend to overstate inflation.
B
You might also like to view...
Which of the following is a measure of the explanatory power of the regression model?
A) t-test B) R2 C) F-test D) Durbin-Watson test
The right decision about what to produce and who to trade with happens:
A. governments from different countries get together to decide on trade. B. only after firms research the cost of inputs such as labor and raw materials, and the sale prices of different goods you could produce, and calculate the most profitable option. C. almost entirely by market decisions automatically. D. when governments publish comparative advantage numbers.