The quality change bias in the CPI describes how failing to account for quality improvements means the CPI inflation rate is lower than the true inflation rate. None of the other options. is the only major bias in CPI. is easily resolved if statistical authorities are careful.
The quality change bias in the CPI describes how failing to account for quality improvements means the CPI inflation rate is lower than the true inflation rate. None of the other options. is the only major bias in CPI. is easily resolved if statistical authorities are careful.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Measuring The Cost Of Living
Section: Chapter Questions
Problem 6PA
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