The CPI overstates the true inflation rate because it does not fully incorporate the effects of quality improvements.
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Q166: The CPI overstates the true inflation rate
Q167: The GDP price index
A)involves all final goods
Q168: If the CPI is 220 one year
Q169: If real GDP in a particular year
Q170: To determine the CPI,you would need to
Q172: If the CPI is 200 one year
Q173: Which of the following is true about
Q174: Real GDP is measured in
A)current-year prices
B)base-year prices
C)nominal
Q175: The CPI tends to understate the true
Q176: If nominal GDP is $6 trillion in
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