It is true that because of the substitution problem, the CPI tends to overstate the true change in the price of the typical basket of consumer goods.
<h3>What is CPI?</h3>
- A consumer price index measures a market basket of goods and services that households have purchased at a weighted average price.
- The measured CPI fluctuates to reflect changes in prices over time.
- One of the most popular methods for determining inflation and deflation is the CPI.
- An essential gauge of an economy's health is inflation. The CPI and other indexes are used by governments and central banks when making economic decisions.
- The decision to raise or cut interest rates is crucial among these.
- If the CPI increases, it indicates that the average rate of change in price over time has increased. The cost of living and income are eventually changed as a result of this.
Learn more about CPI here:
brainly.com/question/14453270
#SPJ4
The buyer value is a concept that is more important to the customers. This refers to the amount that the buyers are expecting out of the purchase of some goods. If I bought a book at a price of $40 then, I loss $10 in the process because as a buyer I expect to pay only $30.
The value of money grows fast during hyperinflation.
Hyperinflation is defined by fast and unrestricted price rises in an economy, generally at rates greater than 50% per month over time. In times of war and economic turbulence in the underlying manufacturing sector, along with a central bank creating an excessive quantity of money, hyperinflation can arise.
As essential items such as food and gasoline become limited, hyperinflation can cause price increases.
While hyperinflations are uncommon, once they start, they may quickly spiral out of control.
Therefore, the correct option is rises rapidly.
To know more about hyperinflation click here:
brainly.com/question/1297747
#SPJ4
Answer:
Yes, because the job offer is for longer than one year from March 1
Explanation:
Since in the question it is mentioned that Sara who is a student have offered a job on March 1 that begins on June 15 and she have to move to california for the job. So here the Sara would ask the letter in the case when she accepted the offer immediately as the job offer would be more than one year i.e. from March 1
Therefore the above represent the answer
