Multiple Choice
To reduce the bias in the consumer price index, the Labor Statistics Department
A) incorporates substitutions by consumers when prices of specific products fall rapidly.
B) updates the market basket every two years, rather than every 10 years.
C) updates the market basket every 10 years, rather than every two years.
D) incorporates substitutions by consumers when prices of specific products rise rapidly.
Correct Answer:
Verified
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