Macroeconomics
Consider a scenario where a country is experiencing rapid technological advancement. How should the government adjust its CPI calculation to better reflect true inflation?
How does new product bias affect the accuracy of CPI measurements?
Why is understanding CPI biases crucial when interpreting inflation data?
What is substitution bias in the context of the Consumer Price Index (CPI)?
What is outlet bias?
In a rapidly changing economy with frequent technological advancements, how should a central bank adjust its CPI calculation to better reflect true inflation?
How does quality bias affect the measurement of inflation in the CPI?
A government is using CPI data to adjust social security payments. How might substitution bias affect these adjustments?
A company is using CPI data to adjust employee salaries. How might quality bias affect these adjustments?
What is outlet bias in the context of the CPI?
