PTP #4

From Jaffe et al

True / False / Uncertain

The introduction of new expensive prescription drugs tends to increase the rate of inflation as measured by a price index designed to measure the cost of living.

Source: Sonia Jaffe, Robert Minton, Casey B. Mulligan, and Kevin M. Murphy, “Extra Homework Problems,” Chicago Price Theory (Princeton, NJ: Princeton University Press, 2019), https://home.uchicago.edu/cbm4/cpt/index.html

Topics: price-indices , measurement , consumer-theory