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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

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understate the actual inflation

be more violative

overstate the actual inflation rate

be unaffected

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