Quality changes are
A) easily accounted for in the consumer price index (CPI).
B) always included in the consumer price index (CPI).
C) included in the gross domestic product (GDP)deflator but not the consumer price index (CPI).
D) generally included in both the consumer price index (CPI)and the gross domestic product (GDP)deflator.
E) at least partially adjusted for in the consumer price index (CPI).

Question

Quizplus · Accepted Answer

Quality changes are at least partially adjusted for in the consumer price index (CPI), which attempts to measure the change in the cost of a fixed basket of goods and services over time. However, it can be difficult to accurately account for all quality improvements, and some adjustments may not be fully reflected in the CPI. Quality changes are also included in the GDP deflator, but the CPI is more commonly used as a measure of inflation for consumers.

Quality Changes Are