The price of dishwashers has remained relatively constant while the quality of dishwashers has improved. The CPI
A) is increased monthly to reflect the increased quality of dishwashers.
B) should not take account of any quality changes because it is a price index not a quality index.
C) has an upward bias if it is not adjusted to take account of the higher quality.
D) has an upward bias because it does not reflect the increased production of dishwashers.
E) is adjusted monthly to reflect the improvement in quality.
Correct Answer:
Verified
Q37: A country reports the total expenditures on
Q38: For the purpose of measuring the cost
Q39: When the price of broccoli increases relative
Q40: If the CPI is used as a
Q41: Suppose the CPI in 1983 is 100
Q43: Real GDP is $140 billion and nominal
Q44: In order to determine if the quantity
Q45: The difference between nominal and real is
A)
Q46: To compare the price of a loaf
Q47: If the average price of a barrel
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents