The CPI __________ inflation because it includes an item in the market basket only after the product becomes __________.
A)overstates,unpopular
B)overstates,obsolete
C)overstates,widely used
D)understates,widely used
E)understates,obsolete

Question

Quizplus · Accepted Answer

The CPI overstates inflation because it includes an item in the market basket only after the product becomes widely used, meaning it may not accurately capture price changes in less popular or newer products.

The CPI __________ Inflation Because It Includes an Item in the Market