Two types of bias that tend to cause the CPI to overstate the "true" rate of inflation are the ________ bias and the ________ bias.
A)substitution; quality adjustment
B)price; quantity
C)aggregation; price
D)quality adjustment; price adjustment

Question

Quizplus · Accepted Answer

Two types of bias that tend to cause the CPI to overstate the 'true' rate of inflation are substitution bias and quality adjustment bias.

Two Types of Bias That Tend to Cause the CPI