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During the financial crisis of 2008 -2009 CPI in the USA decreased dramatically. What can explain...

During the financial crisis of 2008 -2009 CPI in the USA decreased dramatically. What can explain such a decrease? What elements of the CPI basket were affected by the crisis and why? How do you think the CPI will change in 2020?

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Expert Solution

CPI measures the average changes in price of goods and service which consumer purchase.Please see the below image which explains above question in detail

Rahul Sunny answered 1 year ago
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