Multiple Choice
Suppose that lawn mowers are part of the market basket used to compute the CPI. Then suppose that the quality of lawn mowers improves while the price of lawn mowers stays the same. If Statistics Canada precisely adjusts the CPI for the improvement in quality, then, other things equal, what will happen?
A) The CPI will rise.
B) The CPI will fall.
C) The CPI will stay the same.
D) Lawn mowers will no longer be included in the market basket.
Correct Answer:
Verified
Correct Answer:
Verified
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