Answered

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QUESTION 6 (1 POINT)

True or false?

Improvements in the quality of consumer goods and services understate the inflation rate.

Select the correct answer below:
A. True
B. False

Sagot :

GinnyAnswer

Final answer:

Improvements in the quality of consumer goods and services actually understate the inflation rate due to the quality/new goods bias in inflation calculations.


Explanation:

False: Improvements in the quality of consumer goods and services tend to understate the inflation rate. This is due to the quality/new goods bias in inflation calculations, which overstates the true rise in the cost of living by not accounting for enhancements in existing goods or the introduction of new products.


Learn more about Inflation Rate and Quality Bias here:

https://brainly.com/question/44084727


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