Because of the Biases in Calculating the CPI, Actual Inflation

question 264

Multiple Choice

Because of the biases in calculating the CPI, actual inflation is

• A) accurately measured.
• B) less than the measured inflation rate by about 1 percent per year.
• C) more than the measured inflation rate by about 1 percent per month.
• D) more than the measured inflation rate by about 1 percent per year.

---

Definitions:

Chinese Revolution

A period of radical political and social change in China, leading to the establishment of the People's Republic of China in 1949.

Profit-Making

The act or process of generating revenue in excess of costs, leading to financial gains for individuals or organizations.

Armed Conflicts

Situations where two or more groups, including nations or factions within a nation, engage in military combat against each other.

Social Insurance

Government-sponsored programs that provide financial protection to individuals against economic risks (e.g., unemployment, disability, old age).