A CPI miscalculation that overstates its increase by 0.8 percentage points will cause

Question

Quizplus · Accepted Answer

The CPI is used to adjust for inflation, which affects the calculation of the poverty line. Overstating the CPI by 0.8 percentage points would cause the poverty line to rise too quickly, potentially leading to fewer people being classified as living in poverty than actually are. It would not directly cause prices of goods or services to rise.

A CPI Miscalculation That Overstates Its Increase by 0