Between the years 2000 and 2010, the price of cars increased substantially as automobile companies added new and improved features and increased the power of car engines. If cars are included in the fixed basket of goods used to calculate the Consumer Price Index, it will fail to reflect true changes in the cost of living of an average consumer because of the:
a. new goods bias.
b. substitution
bias.
c. quantity bias.
d. quality bias.
d
Economics
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What will be an ideal response?
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If an initial increase in investment spending of $30 caused equilibrium output to increase by $120, what is the value of the MPC?
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Answer the following statement true (T) or false (F)
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