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If a New and Better Good Replaced an Older and Less

Question 393

Multiple Choice

If a new and better good replaced an older and less expensive good, then the price level measured by the CPI


A) is lower than the actual price level.
B) is higher than the actual price level.
C) might be either higher or lower than the actual price.
D) is the same as the actual price level because it measures the prices of the actual goods.

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