The Base Period for CPI Calculations Is Generally 2002

Multiple Choice

The base period for CPI calculations is generally 2002.In 2014, 55% of Canadians had a smartphone, but in 2002 almost no one had a smartphone.This potential for bias in the CPI is referred to as ________ bias and results in ________.

A) outlet; 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; the CPI overestimating the true change in the cost of living
D) new product; the CPI underestimating the true change in the cost of living
E) substitution; the CPI underestimating the true change in the cost of living