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Consider an economy that consumes both wine and pasta. While it consumes both goods, it produces only wine. All pasta that's eaten is imported from

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Consider an economy that consumes both wine and pasta. While it consumes both goods, it produces only wine. All pasta that's eaten is imported from a neighboring country. All else equal, let's say that the price of pasta everywhere rises. This change reflected in inflation calculated with the CPI, and reflected in inflation calculated with the GDP deflator. O would be; would not be O would not be; would be O would not be; would not be O would be; would be

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