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[Related to the Economics in Practice on p. 450] Evaluat

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[Related to the Economics in Practice on p. 450] Evaluate the following statement: Because the CPI is a fixed-weight pri

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[Related to the Economics in Practice on p. 450] Evaluate the following statement: Because the CPI is a fixed-weight price index, it has a tendency to overestimate the rate of inflation. Therefore, if the CPI decreases, it must also have a tendency to underestimate the rate of deflation.

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