To reduce the bias in the consumer price index,the Bureau of Labor Statistics
A) updates the market basket every two years,rather than every 10 years.
B) updates the market basket every 10 years,rather than every two years.
C) incorporates substitutions by consumers when prices of specific products rise rapidly.
D) incorporates substitutions by consumers when prices of specific products fall rapidly.
Correct Answer:
Verified
Q175: Table 9-7 Q176: If we want to use a measure Q177: Table 9-9 Q178: If the CPI changes from 125 to Q179: Most economists believe that the biases in Q181: When the price of gasoline rises,some consumers Q182: Why does the substitution bias cause the Q183: The formula for calculating the CPI is Q184: Table 9-10 Q185: What is outlet bias? 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
A)(Expenditures
A)the tendency for households