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Suppose that consumers have significantly reduced their gasoline usage in response to a rise in gasoline prices, but the consumers' basket used to calculate CPI
Suppose that consumers have significantly reduced their gasoline usage in response to a rise in gasoline prices, but the consumers' basket used to calculate CPI was not adjusted accordingly. As the result, CPI inflation estimate is likely to
Group of answer choices
understate the actual inflation
be more violative
overstate the actual inflation rate
be unaffected
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