Which of the following is a reason why the Traditional CPI overstates the true price level? A) The Traditional CPI does not include goods that are imported. B) The Traditional CPI does not regularly account for improvements in the quality of various goods. C) The Traditional CPI does not consider investment and capital equipment goods. D) The Traditional CPI is reported on a monthly basis which is too infrequent for the BLS to provide an accurate measure of the price level.
Which of the following is a reason why the Traditional CPI overstates the true price level? A) The Traditional CPI does not include goods that are imported. B) The Traditional CPI does not regularly account for improvements in the quality of various goods. C) The Traditional CPI does not consider investment and capital equipment goods. D) The Traditional CPI is reported on a monthly basis which is too infrequent for the BLS to provide an accurate measure of the price level.
Chapter7: Inflation
Section: Chapter Questions
Problem 19SQ
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Which of the following is a reason why the Traditional CPI overstates the true price level?
A) The Traditional CPI does not include goods that are imported.
B) The Traditional CPI does not regularly account for improvements in the quality of various goods.
C) The Traditional CPI does not consider investment and capital equipment goods.
D) The Traditional CPI is reported on a monthly basis which is too infrequent for the BLS to provide an accurate measure of the price level.
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