Discussion:
Which of the following is not a reason that the CPI may overstate the actual rate of inflation.
improvements in quality are difficult to incorporate in the calculation of the CPI
expanded product variety is difficult to incorporate in the calculation of the CPI
energy price increases are too heavily weighted in the calculation of the CPI
calculation of the CPI does not adequately account for consumer responses to changes in relative prices
calculation of the CPI does not adequately account for consumer shifts to discount stores like, Wal-Mart and Target