Economists believe that the chain-weighted GDP price index and the CPI overstate actual price changes by as much as _______ to _______ percent.
A)1; 2
B)2; 3
C)0.5; 1
D)0.5; 1.5

Question

Quizplus · Accepted Answer

The chain-weighted GDP price index and the CPI overstate actual price changes by as much as 0.5 to 1.5 percent. This is because these indices do not fully account for changes in the quality of goods and services over time.

Economists Believe That the Chain-Weighted GDP Price Index and the CPI