All of the following are possible sources of bias in using the Consumer Price Index to measure inflation except
A)the introduction of new goods.
B)an improvement in the quality of goods.
C)commodity substitution.
D)an increase in the cost of living.
E)rising prices.

Question

Quizplus · Accepted Answer

An increase in the cost of living is not a source of bias in using the Consumer Price Index (CPI) to measure inflation, as the CPI is specifically designed to measure changes in the cost of living over time. The other options—introduction of new goods, improvement in quality of goods, commodity substitution, and rising prices—can all potentially result in bias in CPI measurements, as they can make it difficult to accurately measure changes in the prices of goods and services over time.

All of the Following Are Possible Sources of Bias in Using