Author Question: As currently calculated, the CPI tends to overstate the true inflation rate because A) we cannot ... (Read 61 times)

Shelles · **on:** Jun 29, 2018

As currently calculated, the CPI tends to overstate the true inflation rate because

A) we cannot know what the true inflation rate is.
B) it fails to correctly measure quality changes for some products.
C) the market basket selected is inappropriate.
D) the market basket fails to weigh housing costs sufficiently.

Question 2

In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of 600 per month. Then the government imposes a rent ceiling of 500 per month. The deadweight loss is borne by

A) the producers only.
B) the consumers only.
C) all producers and some consumers.
D) all consumers and some producers.