Reflect substitution to lower priced goods by consumers

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Reference no: EM13889137

If the basket of goods used to calculate the CPI is changed to reflect substitution to lower priced goods by consumers, it would result in:

A) Higher growth rates for NGDP.

B) Either higher or lower calculated inflation rates, depending on how different prices change relative to each other.

C) A lower calculated inflation rate.

D) A higher price level in the base year.

E) Higher payments for people with benefits indexed to the CPI.

Reference no: EM13889137

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