The Problems with Using the Consumer Price Index as a Measure

question 6

Multiple Choice

The problems with using the consumer price index as a measure of the cost of living are important because

• A)even the appearance of high rates of inflation cause voters to become disenchanted.
• B)politicians have manipulated the measurement problems to their advantage.
• C)many government programs use the CPI to adjust for changes in the overall level of prices.
• D)if the price level is overstated,consumers will be taken advantage of by sellers of consumer goods.

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