Imagine that you are given $1,000 to spend and told that you must spend it all buying
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Imagine that you are given $1,000 to spend and told that you must spend it all buying items from a Sears catalog. But you do have a choice of catalog. You may select from the 1903 catalog or from Sears.com today. You will pay the prices quoted in the catalog that you choose. Which catalog will you choose and why? Refer to any biases in the CPI that might be relevant to your choice.
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The 1903 catalog is attractive because prices quoted in the 1903 catalog are m...View the full answer
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