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The Measurement Problems in the Consumer Price Index as an Indicator

Question 108

Multiple Choice

The measurement problems in the consumer price index as an indicator of the cost of living are important because


A) even the appearance of high rates of inflation cause voters to become disenchanted.
B) politicians have manipulated the measurement problems to their advantage.
C) many government programs use the CPI to adjust for changes in the overall level of prices.
D) if the price level is overstated, consumers will be taken advantage of by sellers of consumer goods.

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