What is the effect of the sources of bias on the CPI calculation?     A. Changes in relative prices lead consumers to change the items they buy, and the CPI reflects this substitution.   B. The new goods bias injects a downward bias into the CPI.   C. When faced with higher prices, people use discount stores more frequently and convenience stores less frequently, but the CPI doesn't include this outlet substitution.   D. When the quality of a good improves over time, the CPI doesn't include the portion of the price rise attributable to the higher quality in its calculation.

Brief Principles of Macroeconomics (MindTap Course List)
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Chapter6: Measuring The Cost Of Living
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What is the effect of the sources of bias on the CPI calculation?
 
 
A.
Changes in relative prices lead consumers to change the items they buy, and the CPI reflects this substitution.
 
B.
The new goods bias injects a downward bias into the CPI.
 
C.
When faced with higher prices, people use discount stores more frequently and convenience stores less frequently, but the CPI doesn't include this outlet substitution.
 
D.
When the quality of a good improves over time, the CPI doesn't include the portion of the price rise attributable to the higher quality in its calculation.
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