The quality change bias is most likely to put ________ into the CPI and so ________ the inflation rate.

Name: The quality change bias is most likely to put ________ into the CPI and so ________ the inflation rate.
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Question

Quizplus · Accepted Answer

The quality change bias involves including improvements in product quality in the CPI without adjusting for changes in price. This biases the CPI upwards and overstates the inflation rate. Therefore, the correct answer is C - an upward bias, which overstates the inflation rate.

The Quality Change Bias Is Most Likely to Put ________