The CPI might overstate inflation because consumers may shift consumption to cheaper alternatives. Which bias is this associated with?     unmeasured quality     variety of goods     import bias

One criticism of the CPI is that the market basket used in the CPI may not reflect current spending priorities. Which of the following is an example of this?     Personal computers were less powerful in 1982-1984.     Cell phones are more commonly purchased today than in 1993-1995.     Using extreme couponing methods, a family can save hundreds of dollars a month.     Goods cost more in Alaska and Hawaii due to transportation costs.

Name 2 reasons why the CPI underestimates the true Inflation Rate?

What does the CPI in the base year equal? Explain your answer.