Examlex
Yesterday, Colleen went to an interesting lecture on relationship problems. She didn't take notes, because she isn't going to be tested on the lecture. Though she made no effort to memorize any of the information the speaker presented, she is able to repeat a great deal of it to a friend. In particular, she is able to remember the parts that she felt applied to her own past relationships. Which concept explains why?
Substitution Bias
The phenomenon where consumers change their preferences to buy cheaper alternatives as prices rise, which can lead to inaccuracies in measuring inflation.
Consumer Price Index
A metric assessing the weighted average cost of a selection of consumer items and services like food, transportation, and medical services, utilized to determine the inflation level.
Inflation Rate
measures the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
Consumer Price Index
An indicator that assesses the typical shift through time in the expenses urban purchasers face for a predetermined array of consumer items and services.
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