Which of the Following Statements Is False

question 267

Multiple Choice

Which of the following statements is false?

• A) One problem with any fixed-bundle index as a measure of the cost of living is that it does not account for substitutions that consumers might make in response to price changes.
• B) The producer price index is considered to be a leading indicator of future inflation rates.
• C) The best overall indicator of inflationary pressures in the economy is the GDP deflator.
• D) The consumer price index somewhat understates changes in the cost of living.

---

Definitions:

Rejection

A psychological concept referring to the act of dismissing or refusing someone's presence, ideas, or affection, which can have significant emotional effects.

Childhood Experience

Events or conditions in one's early years that significantly impact their development, personality, and behaviors.

Long-Term Affair

A prolonged extramarital relationship that can have significant psychological and social impacts.

Alfred Adler

An Austrian psychiatrist known for his theory of individual psychology, which emphasizes the importance of social interest and feelings of inferiority.