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4. Some economists believe that the CPI overstates inflation compared to the GDP deflator due to: a. substitution| biss, where the CPI overstates the ability of consumers to substitute toward goods whose prices have fallen b. measurod changes in qualit improvements that result in the CPI rising more slowly than it should c. introduction of new goods, where greater product availability increases purchasing power that is not reflected in a lower CPI d. all of the above

4. Some economists believe that the CPI overstates inflation compared to the GDP deflator due to: a. substitution| biss, where the CPI overstates the ability of consumers to substitute toward goods whose prices have fallen b. measurod changes in qualit improvements that result in the CPI rising more slowly than it should c. introduction of new goods, where greater product availability increases purchasing power that is not reflected in a lower CPI d. all of the above

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 26CTQ: Describe a situation, either a government policy situation, an economic problem, or a private sector...
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4. Some economists believe that the CPI overstates inflation compared to the GDP deflator due to: a. substitutior| bias, where the CPI ovrstates the ability of consumers to substitute toward goods whose prices have fallen b. measured changes in quality improvements that result in the CPI rising more slowly than it should c. introduction of new goods, where greater product availability increases purchasing power that is not reflected in a lower CPI d. all of the above
Transcribed Image Text:4. Some economists believe that the CPI overstates inflation compared to the GDP deflator due to: a. substitutior| bias, where the CPI ovrstates the ability of consumers to substitute toward goods whose prices have fallen b. measured changes in quality improvements that result in the CPI rising more slowly than it should c. introduction of new goods, where greater product availability increases purchasing power that is not reflected in a lower CPI d. all of the above
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