select all that apply\nmany worry that the official cpi inflation rate overstates true inflation because the…

select all that apply\nmany worry that the official cpi inflation rate overstates true inflation because the cpi doesnt adequately account for\n□ the introduction of new goods and services.\n□ the general increase in household income over time.\n□ the possibility that consumers might switch from products whose prices are rising to products whose prices are falling.\n□ improvements in the quality of existing goods and services.

select all that apply\nmany worry that the official cpi inflation rate overstates true inflation because the cpi doesnt adequately account for\n□ the introduction of new goods and services.\n□ the general increase in household income over time.\n□ the possibility that consumers might switch from products whose prices are rising to products whose prices are falling.\n□ improvements in the quality of existing goods and services.

Answer

Brief Explanations:

The Consumer - Price Index (CPI) has limitations. New goods and services introduction can change consumption patterns but CPI may not capture it well. Consumers substituting products due to price changes (substitution bias) is not fully accounted for. Quality improvements can make a product worth more but CPI might over - state inflation if it doesn't adjust for quality. Household income is not a factor that CPI fails to account for in over - stating inflation.

Answer:

A. the introduction of new goods and services C. the possibility that consumers might switch from products whose prices are rising to products whose prices are falling D. improvements in the quality of existing goods and services