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pearotter934Lv1
28 Sep 2019
Construct your own market basket of goods on the basis of the purchases you make. How does your "market basket" compare to that used to comprise the CPI index
Construct your own market basket of goods on the basis of the purchases you make. How does your "market basket" compare to that used to comprise the CPI index
Anne Gillian DueroLv10
28 Sep 2019
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Related questions
Three goods are consumed in an economy during years 1 and 2. The table shows prices (P1 and P2) for each good, and it shows the market basket that is used to calculate the consumer price index. The base year is year 1.
|
Good |
P1 |
P2 |
Basket |
|
Milk (gallons) |
$4 |
$4.20 |
4 |
|
Chicken (pounds) |
$5 |
$5.50 |
10 |
|
Onions (bags) |
$2 |
$2.32 |
1 |
Enter numbers in each blank, rounded to two decimal places as necessary. The cost of the basket in year 1 is $____ and the cost of the basket in year 2 is $_____. The value of the CPI in year 1 is _____ and the value of the CPI in year 2 is ______. The inflation rate is equal to ______%.
