If people bought the same market basket of goods as the average consumer again and again:
A) the consumer price index (CPI) would be extremely accurate.
B) the CPI would be less accurate.
C) the gross domestic product (GDP) deflator would be more accurate.
D) the GDP deflator would be less accurate.
E) the CPI would be biased upward relative to the GDP deflator.

Question

Quizplus · Accepted Answer

If people consistently bought the same market basket of goods, the weights used to calculate the CPI would remain constant and the CPI would be extremely accurate in reflecting changes in the prices of those goods over time.

If People Bought the Same Market Basket of Goods as the Average