The Base Period for CPI Calculations Is Generally 1982-84

Multiple Choice

The base period for CPI calculations is generally 1982-84.In 2005,50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s.This potential for bias in the CPI is referred to as ________ bias and results in ________.

A) outlet bias; the CPI underestimating the true change in the cost of living
B) new product; the CPI overestimating the true change in the cost of living
C) outlet bias; the CPI overestimating the true change in the cost of living
D) net product; the CPI underestimating the true change in the cost of living