The Application Reducing the CPI Substitution Bias discusses the new inflation index, the C-CPI, which averages the
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The Application “Reducing the CPI Substitution Bias” discusses the new inflation index, the C-CPI, which averages the Laspeyres and Paasche indexes. Give an example of circumstances such that the traditional CPI (Laspeyres) index would be superior to the new one.
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For example if people do not substi...View the full answer
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Related Book For 
Microeconomics Theory And Applications With Calculus
ISBN: 978-0134167381
4th Edition
Authors: Jeffrey M. Perloff
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