Question
When the quality of a good improves while its price remains the same, the purchasing power of the dollar _________, so if the quality change
When the quality of a good improves while its price remains the same, the purchasing power of the dollar _________, so if the quality change is not accounted for, the CPI will _________ its estimate of inflation.
A.
increases; overstates.
B.
decreases; overstates.
C.
increases; understates.
D.
decreases; understates.
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Economics Today The Macro View
Authors: Roger LeRoy Miller
19th Edition
0134478762, 978-0134478760
