Most Economists Believe That Biases Cause Changes in the CPI

question 24

Multiple Choice

Most economists believe that biases cause changes in the CPI to overstate the inflation rate by ________ percentage points.

• A)0.1 to 0.2
• B)0.2 to 2.0
• C)0.4
• D)0.5 to 1.0
• E)1.0 to 3.0

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Definitions:

Hysteria

A historical term for a psychological disorder characterized by a wide variety of physical and emotional symptoms, now understood in terms of specific disorders like conversion or dissociative disorders.

Somatogenic View

The perspective that mental disorders originate from biological or physical factors.

Hypnotism

A trance-like state of focused attention, reduced peripheral awareness, and heightened suggestibility, often used for therapeutic purposes.

Alcoholism

a chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol, leading to a range of physical, mental, and social problems.