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In Bovania, milk constitutes 56% of the typical basket of goods for a typical consumer. Let's say the price of milk rises by 7% and the prices of all other goods fall by 4%. Based on the information given, we can definitely say...
The answer is that the CPI in Bovania is greater this year than in the previous year - but why? How can we make a statement about the CPI without knowing any prices of any goods in Bovania's economy?
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In Bovania, milk constitutes 56% of the typical basket of goods for a typical consumer. Let's say th...
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