apter 8
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Question 16 (Mandatory) (1 point)
Say consumers buy two kinds of meat, beef and pork. If the price of pork doesn't
change and the price of beef rises over time, then consumers will typically buy more
pork and less beef. If the Bureau of Labor Statistics fails to capture such substitution
between goods in the CPI calculation, then this will result in
an overestimation of the inflation rate.
an overestimation of both the CPI and the inflation rate.
an underestimation of the CPI.
an underestimation of the inflation rate.
(1 point)