If the CPI doesn't measure product quality improvements,the CPI tends to
A)Understate the inflation rate.
B)Overstate the inflation rate.
C)Understate economic growth.
D)Be artificially low.

Question

Quizplus · Accepted Answer

If the CPI doesn't measure product quality improvements, it tends to overstate the inflation rate because the increase in price could be due to improvements in quality rather than inflation.

If the CPI Doesn't Measure Product Quality Improvements,the CPI Tends