Question

The CPI overstates the increase in the cost of living because: (there may be more than...

The CPI overstates the increase in the cost of living because: (there may be more than 1 possible answer)

a.

it doesn't take into account that consumers substitute toward goods that become relatively cheaper.
b.

it doesn't take into account improvements in the quality of goods in the market basket.
c.

it only takes producer goods into consideration.
d.

it doesn't take into account the introduction of new goods that allow consumers access to a greater variety of goods.
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