Suppose a countrys cpi increased from 21 to 23 in the


Suppose a country's CPI increased from 2.1 to 2.3 in the course of 1 year. Use this fact to compute the rate of inflation for that year. Why might the CPI overstate the rate of inflation?

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Econometrics: Suppose a countrys cpi increased from 21 to 23 in the
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