Inflation & Productivity

If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from ?

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If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from ?

A. none of these answers
B. substitution bias
C. base year bias
D. bias due to unmeasured quality change
E. bias due to the introduction of new goods.

Which of the following would probably cause the CPI to rise more than the GDP deflator in the Pakistan ?

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Which of the following would probably cause the CPI to rise more than the GDP deflator in the Pakistan ?

A. An increase in the price of BMWs produced in Germany and sold in the Pakistan
B. An increase in the price of Peugeots produced in the Pakistan
C. An increase in the price of helicopters purchased by the Pak Navy.
D. An increased in the Price of domestically produced armoured vehicles sold exclusively to Iran