For each of the following events, how would an economist using a 10-year-old market basket create a

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For each of the following events, how would an economist using a 10-year-old market basket create a bias in measuring the change in the cost of living today?

a. A typical family owns more cars than it would have a decade ago. Over that time, the average price of a car has increased more than the average prices of other goods.

b. Virtually no households had broadband internet access 20 years ago. Now many households have it, and the price has regularly fallen each year.

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Economics

ISBN: 9781319181949

5th Edition

Authors: Paul Krugman, Robin Wells

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