Asked by samuel morales on Jun 04, 2024
Verified
The CPI does not reflect the increase in the value of the dollar that arises from the introduction of new goods.
CPI
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Increase In Value
A rise in the monetary worth or market value of an asset.
Dollar
A unit of currency used in various countries, notably the United States, represented by the symbol $.
- Identify and perceive the barriers and biases related to the Consumer Price Index.
Verified Answer
DM
Diana MooreJun 10, 2024
Final Answer :
True
Explanation :
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, but it does not directly account for the increase in the value of the dollar that comes from the availability of new and better products.
Learning Objectives
- Identify and perceive the barriers and biases related to the Consumer Price Index.