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Part $1$

Choose the statement that is

correct.

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Part $1$

A$.$

The bias in the CPI gives workers with wage contracts linked to the CPI less real income than the firm intended.

B$.$

The bias in the CPI decreases government outlays.

C$.$Many private agreements comma such as wage contracts comma are linked to the CPI

Many private agreements comma such as wage contracts comma are linked to the CPIMany$$private$$agreements$,$such$$as$$wage$$contracts$,$are$$linked$$to$$the$$CPI

D$.$

The main source of bias in the CPI arises from frequently updating the CPI market basket.