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The Technique Currently Used to Calculate the CPI Implicitly Assumes

Question 26

Multiple Choice

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy


A) relatively more of goods whose relative prices are rising.
B) relatively less of goods whose relative prices are rising.
C) the same relative quantities of goods as in a base year.
D) goods and services whose quality improves at the rate of growth of real income.

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