Question

If people bought the same market basket of goods as the average consumer again and again the:______.

a) consumer price index (CPI) would be extremely accurate.b) consumer price index (CPI) would be less accurate.c) gross domestic product (GDP) deflator would be more accurate.d) gross domestic product (GDP) deflator would be less accurate.e) consumer price index (CPI) would be biased upward relative to the GDP deflator.

Answer 1

If people bought the same market basket of goods as the average consumer again and again the: a) consumer price index (CPI) would be extremely accurate.