Question

1 pts
the most commonly cited measure of inflation in the united states is:
the consumer price index (cpi).
the deflationary price index (dpi)
the cumulative price index (cpi)
the inflationary price index (ipi)

question 8
1 pts
one of the reasons that a rise in the price of a fixed basket of goods over time tends to overstate
the rise in a consumers true cost of living, is:
substitution bias
attribution bias
complimentary bias
preference bias

Explanation:

For the first question: The Consumer Price Index (CPI) is the standard, widely cited metric for measuring inflation in the U.S., tracking changes in prices of a fixed basket of consumer goods. The other index names listed are not valid inflation measures.
For the second question: When prices rise, consumers substitute more expensive goods with cheaper alternatives, but a fixed basket does not account for this, leading to an overstatement of the true cost of living. This is called substitution bias, while the other bias options do not apply to this context.

Answer:

1. the Consumer Price Index (CPI)
2. substitution bias