The CPI tends to overstate the true inflation rate because
A. we cannot know what the true inflation rate is.
B. the market basket actually selected is inappropriate.
C. the market basket fails to weigh housing costs sufficiently.
D. it fails to consider the effects of new products in the marketplace.
Answer: D
Economics
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Which of the following is a criterion for determining whether a foreign nation is dumping?
a. The good is not produced at home. b. The good is selling below the price in the exporting nation. c. The good is priced below average total cost. d. The good is selling below the price in the exporting nation or is priced below average total cost.
Economics
The study of aggregate economic behavior is referred to as:
A. Microeconomics. B. Macroeconomics. C. Government policy. D. The business cycle.
Economics