All of the following are possible sources of bias in using the Consumer Price Index to measure inflation except
A)the introduction of new goods.
B)an improvement in the quality of goods.
C)commodity substitution.
D)an increase in the cost of living
E)Both C and D are exceptions.

Question

Quizplus · Accepted Answer

An increase in the cost of living is not a possible source of bias in using the Consumer Price Index to measure inflation. In fact, it is the very purpose of the index to measure changes in the cost of living over time. The other choices - A, B, C, and E - are all possible sources of bias that can affect the accuracy of the Consumer Price Index as a measure of inflation.

All of the Following Are Possible Sources of Bias in Using