Why does substitution bias arise if we calculate the inflation rate based on a fixed basket of

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Why does “substitution bias” arise if we calculate the inflation rate based on a fixed basket of goods?

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Principles Of Economics

ISBN: 9781506699868

2nd Edition

Authors: OpenStax

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Question Posted: Nov 01, 2023 04:44 AM

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Why does substitution bias arise if we calculate the inflation rate based on a fixed basket of

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Substitution bias arises when calculating the inflation rate based on a fixed basket of goods because it doesnt account for the way consumers adjust t...View the full answer

Principles Of Economics

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