In 2011 the cpi increased by 14 the gdp price index
In 2011, the CPI increased by 1.4%, the GDP price index increased by 1.2% and the PCE increased by 1.8%, we can see all are increases, but why does each one of these measure give a different inflation rate?
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in 2011 the cpi increased by 14 the gdp price index increased by 12 and the pce increased by 18 we can see all are
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1 assuming a constant marginal cost a lower price elasticity of demand would call for a relatively lower mark-up
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