If the official CPI inflation rate is 4%, the "true" rate of inflation may be closer to ______ according to the findings of the Boskin Commission.
A)-4%
B)0%
C)2%
D)6%

Question

Quizplus · Accepted Answer

The Boskin Commission found that the CPI tends to overstate inflation by about 1-2 percentage points, so the "true" rate of inflation might be closer to 2% if the official rate is 4%.

If the Official CPI Inflation Rate Is 4%, the "True