Which of the following was a way for the Bureau of Labor Statistics to reduce the quality/new good bias in its calculation of the CPI? Remove energy and food prices. Allow for some substitution amongst products. Update the list of products included in the CPI more often and rapidly. Automatically reduce the inflation by 0.5% to account for quality/new good bias.
Which of the following was a way for the Bureau of Labor Statistics to reduce the quality/new good bias in its calculation of the CPI? Remove energy and food prices. Allow for some substitution amongst products. Update the list of products included in the CPI more often and rapidly. Automatically reduce the inflation by 0.5% to account for quality/new good bias.
Chapter13: Inflation
Section: Chapter Questions
Problem 19SQ
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Which of the following was a way for the Bureau of Labor Statistics to reduce the quality/new good bias in its calculation of the CPI?
Remove energy and food prices.
Allow for some substitution amongst products.
Update the list of products included in the CPI more often and rapidly.
Automatically reduce the inflation by 0.5% to account for quality/new good bias.
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