price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patterns. the problem this creates for inflation calculation is called

Here is the answer for the question – price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patterns. the problem this creates for inflation calculation is called. You’ll find the correct answer below

price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patterns. the problem this creates for inflation calculation is called

The Correct Answer is

substitution bias

Reason Explained

substitution bias is correct for price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patterns. the problem this creates for inflation calculation is called

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