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The Paasche price index: Tends to overestimate the rise in prices in periods of inflation. Tends to underestimate the fall in prices during periods of

The Paasche price index:
Tends to overestimate the rise in prices in periods of inflation.
Tends to underestimate the fall in prices during periods of deflation.
Uses base period quantities as its weights.
Tends to overestimate the fall in prices during periods of deflation.

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