If the Bureau of Labor Statistics changed the way it calculates the consumer price index (CPI) so as to take into account product quality changes and the changing mix of products and services purchased by the average family, the result would most likely
A) show a higher rate of inflation.
B) show a lower rate of inflation.
C) cause an increase in Social Security payments.
D) cause higher wage increases for union employees with contracts that specify automatic wage boosts when the CPI rises.

Question

Quizplus · Accepted Answer

Adjusting the CPI for product quality changes and the changing mix of products and services can more accurately reflect the true cost of living, potentially showing a lower rate of inflation by accounting for improvements in product quality or shifts to less expensive items.

If the Bureau of Labor Statistics Changed the Way It