Several studies in the 1990s concluded that the consumer price index overstated inflation by about
A)3 percentage points per year,and that number of percentage points likely still applies now.
B)3 percentage points per year,but recent improvements to the CPI probably have reduced the overstatement of inflation to something less than 3 percentage points.
C)1 percentage point per year,and that number of percentage points likely still applies now.
D)1 percentage point per year,but recent improvements to the CPI probably have reduced the overstatement of inflation to something less than 1 percentage point

Question

Quizplus · Accepted Answer

Recent improvements to the CPI, such as better accounting for quality changes and substitution effects, have likely reduced the overstatement of inflation from the original estimate of 1 percentage point.

Several Studies in the 1990s Concluded That the Consumer Price