Which of the Following Statements Is False

question 163

Multiple Choice

Which of the following statements is false?

• A) The consumer price index understates changes in the cost of living.
• B) The chain index for GDP overstates actual changes in prices.
• C) The best overall indicator of inflationary pressures in the economy is the GDP price index.
• D) One problem with any fixed- bundle index as a measure of the cost of living is that it does not account for substitutions that consumers might make in response to price changes.

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Definitions:

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, including activities undertaken while working, playing, carrying out household chores, traveling, and engaging in recreational pursuits.

Appetites

Natural desires or cravings, especially for food or pleasure.

Rest Cure

A medical treatment used in the late 19th and early 20th centuries, prescribing complete rest, often for mental health issues, highly criticized for its use on women.

Silas Weir Mitchell

A 19th-century American physician known for his work on nerve injuries and the rest cure, especially relating to the treatment of women with "hysteria."