The CPI is 150 in Year 1 and 180 in Year 2. Then the inflation rate between Year 1 and Year 2 is____?

Which of the following is an example of unmeasured quality change in the CPI?

A. the price of a similar product rises less than a product in the CPI basket

B. a product not in the CPI basket contains slightly different technology each year

C. a product in the CPI basket contains slightly different technology each year

D. the price of a similar product rises more than a product in the CPI basket

Relative price changes consumer behavior. This is an example of

A. unmeasured quality change in the CPI

B. neither substitution bias nor unmeasured quality change in the CPI

C. substitution bias and unmeasured quality change in the CPI

D. substitution bias in the CPI only

One of the main differences between the CPI index and the GDP deflator is that CPI

A contains the prices of all domestically produced goods and services.

B contains only the prices of exported goods and services.

C shows the effects of goods produced for businesses more than the GDP deflator.

D shows the effects of imported goods prices more than the GDP deflator.