The CPI is a perfect measure of the cost of living.

Question

Quizplus · Accepted Answer

While the CPI is a widely used measure of inflation and changes in the prices of goods and services over time, it is not a perfect measure of the cost of living. This is because it has some limitations, such as it does not take into account changes in quality of products, substitutions that consumers might make in response to price changes, and differences in spending patterns across different households.

The CPI Is a Perfect Measure of the Cost of Living