A panel of economists concluded that the current Consumer Price Index overstates increases in the "cost of living" by about
A)9 percent per year
B)3 percent per year
C)5 percent per year
D)7 percent per year
E)1 percent per year

Question

Quizplus · Accepted Answer

The panel of economists found that the Consumer Price Index (CPI) tends to overstate the cost of living increases by approximately 1 percent per year due to factors like substitution bias, quality improvements, and new product introductions not being fully accounted for.

A Panel of Economists Concluded That the Current Consumer Price