Because of the biases in calculating the CPI, actual inflation is
A) accurately measured.
B) less than the measured inflation rate by about 1 percent per year.
C) more than the measured inflation rate by about 1 percent per year.
D) more than the measured inflation rate by about 1 percent per month.

Question

Quizplus · Accepted Answer

The biases in calculating the CPI tend to overestimate the true inflation rate, so actual inflation is less than the measured inflation rate by about 1 percent per year.

Because of the Biases in Calculating the CPI, Actual Inflation