Because consumers can sometimes substitute cheaper goods for those that have risen in price, a. the CPI
Question:
Because consumers can sometimes substitute cheaper goods for those that have risen in price,
a. the CPI overstates inflation.
b. the CPI understates inflation.
c. the GDP deflator overstates inflation.
d. the GDP deflator understates inflation.
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The correct answer is b the CPI understates inflation When co...View the full answer
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