526PART EIGHTTHE DATA OF MACROECONOMICS4.Beginning in 1994, environmental regulations haverequired that gasoline contain a new additive to reduceair pollution. This requirement raised the cost ofgasoline. The Bureau of Labor Statistics (BLS) decidedthat this increase in cost represented an improvement inquality.a.Given this decision, did the increased cost ofgasoline raise the CPI?b.What is the argument in favor of the BLS’sdecision? What is the argument for a differentdecision?5.Which of the problems in the construction of the CPImight be illustrated by each of the following situations?Explain.a.the invention of the Sony Walkmanb.the introduction of air bags in carsc.increased personal computer purchases in responseto a decline in their priced.more scoops of raisins in each package of RaisinBrane.greater use of fuel-efficient cars after gasoline pricesincrease6.The New York Timescost $0.15 in 1970 and $0.75 in 1999.
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