The CPI bias was estimated by the Congressional Advisory Commission on the Consumer Price Index as
A) understating the actual inflation rate by about 5 percentage points a year.
B) understating the actual inflation rate by more than 5 percentage points a year.
C) overstating the actual inflation rate by about 1 percentage point a year.
D) overstating the actual inflation rate by more than 5 percentage points a year.
E) understating the actual inflation rate by about 1 percentage point a year.
C
You might also like to view...
Broadly speaking, Social Security redistributes incomes from high-to low-income individuals, from men to women, and from young to old.
A. True B. False C. Uncertain
As people have more time to adjust to a price change,
a. demand becomes more elastic, and supply becomes less elastic. b. demand becomes less elastic, and supply becomes more elastic. c. both supply and demand become less elastic. d. both supply and demand become more elastic. e. elasticity of both demand and supply tends toward unity.
In the event that China rises, and the U.S. overcomes its setbacks and does not decline further, the situation may be similar to that seen in the Cold War, one of
a. bipolarity. b. unipolarity. c. anarchy. d. multipolarity
The "rule of 70" is a formula for determining the approximate number of:
A. Years that it would take for a value (like real GDP) to expand 70 times B. Years that it would take for a value (like real GDP) to double C. Times a value (like real GDP) is a multiple of 70 D. Times one could double a certain value (like real GDP) over 70 years