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25 November, 13:29

Why is a hypothetical basket of goods used to measure inflation?

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  1. 25 November, 16:11
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    Because consumers can see the general increase in price over time by using a basket of goods. In addition, Inflation is often measured by evaluating alterations in the cost of a fixed basket of goods and services. This technique overestimates inflation because it does not account for alterations in outgoings patterns that outcome from comparative price variations.
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