The quality change bias in the CPI describes how failing to account for quality improvements means the CPI inflation rate is lower than the true inflation rate. None of the other options. is the only major bias in CPI. is easily resolved if statistical authorities are careful.
The quality change bias in the CPI describes how failing to account for quality improvements means the CPI inflation rate is lower than the true inflation rate. None of the other options. is the only major bias in CPI. is easily resolved if statistical authorities are careful.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Justify for the correct option
![4.
The quality change bias in the CPI
describes how failing to account for quality improvements means the CPI inflation
rate is lower than the true inflation rate.
None of the other options.
is the only major bias in CPI.
is easily resolved if statistical authorities are careful.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F211fd0d2-45cd-4603-b99f-222084379316%2F4d22cbfc-c066-4f48-8d46-c02a17de1182%2Fc0ufzif_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4.
The quality change bias in the CPI
describes how failing to account for quality improvements means the CPI inflation
rate is lower than the true inflation rate.
None of the other options.
is the only major bias in CPI.
is easily resolved if statistical authorities are careful.
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