Asked by Blair Harrell on May 28, 2024
Verified
There is no longer much debate among economists concerning the severity of and the solution to the problems in using the CPI to measure the cost of living.
Economists
Experts focused on exploring how goods and services are created, shared, and used, while examining trends and problems in the economy.
CPI
The Consumer Price Index reflects the average cost changes over time for a mix of consumer goods and services, including items such as food, medical care, and transportation, through a weighted average approach.
Cost of Living
The amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and time.
- Absorb the details and goals of the Consumer Price Index (CPI).
Verified Answer
RO
Rachel OlivaMay 29, 2024
Final Answer :
False
Explanation :
There is still significant debate among economists regarding the accuracy of the Consumer Price Index (CPI) as a measure of the cost of living. Economists discuss issues like substitution bias, new product bias, quality change bias, and outlet substitution bias, among others, when considering the CPI's effectiveness in accurately reflecting the cost of living.
Learning Objectives
- Absorb the details and goals of the Consumer Price Index (CPI).