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Problems with CPI Do Not Include _____

Question 117

Multiple Choice

Problems with CPI do not include _____


A) a quality bias.
B) not adjusting for the fact that households shift away from goods that have become more costly.
C) failing to keep up with the consumer shift toward discount stores.
D) that it does not allow for some substitution within narrow categories.
E) that it can distort other measures, such as wages, that use the CPI to adjust for inflation.

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