If the Boskin Commission's conclusion is correct, then the CPI ______ the "true" inflation and improvements in living standards over time has been _____.
A)understates; overestimated
B)understates; underestimated
C)overstates; underestimated
D)measures; overestimated

Question

Quizplus · Accepted Answer

The Boskin Commission concluded that the Consumer Price Index (CPI) overstates the true rate of inflation, which means that improvements in living standards have been underestimated.

If the Boskin Commission's Conclusion Is Correct, Then the CPI