Answer to Question #59110 in Macroeconomics for julie
2) If Donna's favorite chocolate shrank in size, but the price is the same, the inflation is understated, because the price is not changed and CPI is the same too, but there is an inflation.
3) If Chris uses the same shoes for 15 years, but the price for this shoes doubled, then this case doesn't cause inflation to be overstated or understated.
4) If Zach buys muffins instead of bagels, then the inflation is understated, because according to the substitution to another good CPI index will not accurately predict the change in inflation.
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