A. the tendency for the CPI to overstate price changes. O B. the tendency for government officials to impose their values on the data. O C. errors in measuring the prices used in the CPI. D. the tendency for the CPI to understate inflation. O E. the tendency for the CPI to understate price changes.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 13P
icon
Related questions
Question
When economists speak of the CPI bias, they are referring to
O A. the tendency for the CPI to overstate price changes.
O B. the tendency for government officials to impose their values on the data.
O C. errors in measuring the prices used in the CPI.
O D. the tendency for the CPI to understate inflation.
O E. the tendency for the CPI to understate price changes.
Click to select your answer.
Transcribed Image Text:When economists speak of the CPI bias, they are referring to O A. the tendency for the CPI to overstate price changes. O B. the tendency for government officials to impose their values on the data. O C. errors in measuring the prices used in the CPI. O D. the tendency for the CPI to understate inflation. O E. the tendency for the CPI to understate price changes. Click to select your answer.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Inflation and Unemployment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning