Which of the following statements is
true?
◦ One benefit with any fixed-bundle index as a measure of the cost of living is that it does not account for substitutions that consumers might make in response to price changes.
◦ The producer price index is considered to be a leading indicator of future inflation rates.
◦ The best overall indicator of inflationary pressures in the economy is the CPI.
◦ The consumer price index somewhat understates changes in the cost of living.