In 1986,an Apple IIe computer with 65 kilobytes of memory cost around $1 500.Today,a $1 500 iMac computer (also made by Apple)comes with 8 gigabytes of memory.This illustrates the potential for what kind of bias in CPI calculations?

Question

Quizplus · Accepted Answer

This illustrates the increase in quality bias in CPI calculations, as the improvement in technology and increase in memory capacity over time has led to a higher-quality product being offered for the same price. This can make it difficult to accurately measure inflation rates over time.

In 1986,an Apple IIe Computer with 65 Kilobytes of Memory