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The Increase in Quality Bias in the Consumer Price Index

Question 211

Multiple Choice

The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation,but ________ quality increases.This causes the CPI to ________ the cost of the market basket.


A) also; understate
B) also; overstate
C) not; understate
D) not; overstate

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