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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

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.In your discussion, analyze how by deviating from the "typical consumer" that the CPI attempts to track affects the problems in the CPI.

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