As a Result of the Changing Variety and Quality of Goods

question 9

Multiple Choice

As a result of the changing variety and quality of goods that the typical consumer purchases each year,many economists argue that the CPI might:

• A) have to be abandoned in favor of a better measure of inflation.
• B) not be as good a measure of inflation as the GDP deflator is.
• C) understate inflation.
• D) overstate inflation.

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Definitions:

Puzzle Box

An experimental apparatus designed by Edward Thorndike to study trial-and-error learning in animals.

Conditioned Response

A learned response to a previously neutral stimulus after it has been repeatedly paired with an unconditioned stimulus.

Unconditioned Response

An automatic, natural response to a stimulus that occurs without any need for prior learning or conditioning.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.