The Boskin Commission concluded that the CPI overstates increases in the cost of living by ________ percentage point(s)per year.
A)Less than 1
B)1 to 2
C)About 3
D)Over 4

Question

Quizplus · Accepted Answer

The Boskin Commission concluded that the Consumer Price Index (CPI) overstates increases in the cost of living by 1 to 2 percentage points per year. This conclusion was based on their analysis of how the CPI accounted for changes in the cost of living, including issues like substitution bias, outlet substitution bias, and quality changes.

The Boskin Commission Concluded That the CPI Overstates Increases in the Cost