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If consumers purchase fewer of those products that increase most in price and more of those products that increase less in price as compared to
If consumers purchase fewer of those products that increase most in price and more of those products that increase less in price as compared to the CPI basket, then changes in the CPI overstates the true rate of inflation are less than the change in the GDP deflator. are less than the true rate of inflation are larger than the change in the GDP deflator. are proportional to the increase in quality bias
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