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The Bureau of Labour Statistics reported the subsequent CPI data
June 2006 201.9
June 2007 207.2
June 2008 217.4
a) Explain what do these numbers tell you about the price level in these three years?
b) Compute the inflation rates for the years ended June 2007 and June 2008.
c) Explain how did the inflation rate change in 2008?
d) Explain why might these CPI numbers be biased?
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