In 1996, an advisory committee of economists that studied the CPI found
a. no bias in the CPI
b. that in a typical year the CPI overstates the inflation rate by at least 1.1 percent per year
c. that the CPI consistently overestimates the inflation rate by less than 1 percent per year
d. that the CPI typically underestimates the inflation rate
e. that the CPI is somewhat erratic; it occasionally underestimates and occasionally overestimates the inflation rate
B
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What is the name of the organization that defines business cycle peaks and troughs in the United States?
A) the National Bureau of Economic Research B) the National Peak and Trough Committee C) the Bureau of Labor Statistics D) the Federal Reserve
Refer to the above table. What is the absolute price elasticity of demand if a price falls from $7.50 to $7?
A) 10 B) 1.38 C) 0.724 D) 0.1