The CPI does not reflect the increase in the value of the dollar that arises from the introduction of new goods.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, but it does not directly account for the increase in the value of the dollar that comes from the availability of new and better products.

The CPI Does Not Reflect the Increase in the Value