Substitution Bias Causes the CPI to Understate the Increase in the Cost

question 209

True/False

Substitution bias causes the CPI to understate the increase in the cost of living from one year to the next.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxieties by gradual exposure to the feared object or situation.

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of modifying dysfunctional thoughts and beliefs to improve emotional and behavioral outcomes.

Test Beliefs

Ideas or assumptions that are evaluated or verified through the process of testing or experimentation.

Assumptions

Accepted beliefs or statements taken for granted without proof.