Home / Questions / How will the following affect the reliability of a consumer price index if the consumer p
How will the following affect the reliability of a consumer price index if the consumer
price index’s base year hasn’t changed in 25 years?
a.Consumers collect and use frequent-flyer miles to buy airline tickets.
b.Legislation passes that allows consumers to request generic instead of name brand drugs.
c.Old camcorders have black and white viewfinders, while newer models have color viewfinders.
2. How are the CPI and the GDP deflator alike? How do they differ?
3. Use the international trade effect to explain why our aggregate demand curve is downward sloping.
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