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For each statement in the following table, choose the corresponding criticism of the Consumer Price Index. Statement Criticism The CPI can overstate the impact of
For each statement in the following table, choose the corresponding criticism of the Consumer Price Index. Statement Criticism The CPI can overstate the impact of inflation when there are rapid advances in computing technology. The CPI does not adequately account for changes in quality. The CPI can overstate the impact of inflation if large increases in pear prices shift The CPI does not adjust sufficiently for substitution between goods. many consumers toward purchasing peaches instead. The market basket is not equally representative for all consumers. The CPI can understate inflation for retirees, as they tend to buy more medical services than a typical family
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