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Select the correct words to complete this text: One of the possible inaccuracies in the way we measure the inflation rate is called the quality
Select the correct words to complete this text: One of the possible inaccuracies in the way we measure the inflation rate is called the quality / new goods bias. It refers to the fact that an inflation rate calculated using a fixed basket of goods over time does not account for possibility that we may be getting a quality of existing goods, or that completely new goods may have been invented. For example, phones in 2020 are more expensive than phones in 1990, but they are also very different devices. When we simply look at rising prices without taking into account such changes, we risk how much the cost of living has increased. The true inflation rate may be considerably than it appears from our calculations
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