Economy, asked by nihashahid, 7 months ago

suppose a country's CPI increases from2.1 ti 2.3 in a course of one year. Use this fact compute the rate of inflation of this year. Why might the CPI overstate the rate of inflation.

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Answered by yumnaanwer

Answer:

Topics include the consumer price index (CPI), calculating the rate of inflation, the ... But it does have some limitations, such as substitution bias, which can overstate ... this is the percentage increase in the price level from one period to the next. ... “market basket”) each year; the consumer price index and the producer price ...

Missing: 2.1 ‎2.3

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suppose a country's CPI increases from2.1 ti 2.3 in a course of one year. Use this fact compute the rate of inflation of this year. Why might the CPI overstate the rate of inflation.​

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suppose a country's CPI increases from2.1 ti 2.3 in a course of one year. Use this fact compute the rate of inflation of this year. Why might the CPI overstate the rate of inflation.