Question
We measure inflation using the Consumer Price Index (CPI), but the CPI is an imperfect measure of prices because of three problems. Identify those three
We measure inflation using the Consumer Price Index (CPI), but the CPI is an imperfect measure of prices because of three problems. Identify those three problems and discuss whether they overstate or understate the level of inflation in the economy. Analyze how deviating from the "typical consumer" the CPI attempts to track affects the problems in the CPI.
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
