Answer:
A. Substitution bias and the introduction of new goods.
Explanation:
The Consumer price index is a measure of the overall cost of goods and services (usually measured in fixed basket), purchased by a consumer in a year as compared to previous years. It gives the government and economists an idea of the cost of living of individuals in a nation. Some problems of the CPI include
1. Substitution Bias: The CPI assumes that prices of goods and services change in a fixed way as the years go by. It also does not consider the fact that sometimes some customers have preference for expensive items compare with the less expensive items. This is reflected in the OPEC case where it is automatically assumed that customers would prefer the cheaper hydrogen-powered engines to the gasoline engines.
2. Introduction of New goods: The CPI fails to recognize that new goods would enter a market because the CPI assumes a fixed basket of items and products. The introduction of new goods would affect comparisons to previous years' CPIs. The new good invented in the above case is the hydrogen-powered engine.
The major benefit of using R for the project is it easily reproduces and shares an analysis.
<h3>What is R programming used for?</h3>
R is a programming language and surroundings typically utilized in statistical computing, statistics analytics, and medical research.
It is one of the maximum famous languages utilized by statisticians, statistics analysts, researchers, and entrepreneurs to retrieve, clean, analyze, visualize and present statistics.
Therefore, The major benefit of using R for the project is it easily reproduces and shares an analysis.
learn more about using R programming:
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Answer: Another reason people might travel is maybe for a vacation or get away or people also might travel for their work.
Explanation:
Answer and Explanation:
The complementary goods are those goods which are used together while on the other hand the substitute goods are those goods that are used in place of one another
Based on this, the classification is as follows
1. Complementary goods
2. Substitute goods
3. Substitute goods
The above represents the classifications
With the purchase of the bonds, the money supply in the bank will increase.
<u>Explanation:</u>
Open market purchase strategy or method is a method that the government uses to control supply of money in the economy of a country. If the money supply increases in the economy, then the government sells the treasury bonds to the public to decrease money in hand and if money supply decreases then it buys bonds from public to increase the money in their hand so that they buy more products and the economy grows.
So if for this purpose, the government will buy the treasury bonds from a bank, then the money supply with that bank will increase.
