Which of these events would cause the consumer price index to overstate the increase in the cost of living?

a. Car makers benefit from a new technology that allows them to sell higher-quality cars to consumers with no increase in price.
b. Energy prices decrease, and consumers respond by buying more gas and electricity.
c. A new good is introduced that renders cellular telephones inferior and obsolete.
d. All of the above are correct.

d

Economics

You might also like to view...

In 1995, the General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO)

Indicate whether the statement is true or false

Economics

The 2002 tax reform is a good example of special interests being less influential because Congress was considering comprehensive tax reform

a. True b. False

Economics