Three accuracy problems with the consumer price index (CPI)are
A) the income effect,substitution effect,and money illusion.
B) substitution,quality changes,and the money illusion.
C) price confusion,substitution,and quality changes.
D) substitution,quality changes,and the availability of new goods and services.
E) the availability of new goods and services,substitution,and traditional bundle bias.

Question

Quizplus · Accepted Answer

The CPI faces accuracy issues due to substitution (consumers switching to cheaper alternatives), quality changes (improvements or deteriorations in product quality), and the introduction of new goods and services that are not immediately included in the index.

Three Accuracy Problems with the Consumer Price Index (CPI)are