Which of the following means that the CPI overstates the actual inflation rate?
A. new goods bias
B. quality change bias
C. outlet substitution bias
D. All of the above cause the CPI to overstate inflation
Answer:D
Which of the following means that the CPI overstates the actual inflation rate?
A. new goods bias B. quality change bias C. outlet substitution bias D. All of the above cause the CPI to overstate inflation