Recent Changes in Methods Used to Compute the CPI Have

question 33

Multiple Choice

Recent changes in methods used to compute the CPI have made the

• A)upward bias in the CPI inflation rate more severe than it used to be.
• B)upward bias in the CPI inflation rate less severe than it used to be.
• C)downward bias in the CPI inflation rate more severe than it used to be.
• D)downward bias in the CPI inflation rate less severe than it used to be.

---

Definitions:

Silk

A natural fiber known for its luster and softness, produced by the larvae of silk moths, used in the manufacture of luxurious fabrics.

Price Taker

A firm or individual who accepts the prevailing prices in the market since they do not have the power to influence it.

Small Country

A nation with a smaller geographic area or population, often with less impact on global economic trends.

International Trade

Conducting transactions of goods and services over the boundaries of nations or territories.