Multiple Choice
Which of the following assumptions is NOT a problem in using the consumer price index (CPI) to accurately state the rate of inflation?
A) The CPI assumes that people do not substitute goods.
B) The CPI does not account for quality changes.
C) The CPI does not include new products.
D) The CPI does not deal with producer prices.
Correct Answer:
Verified
Correct Answer:
Verified
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