Macroeconomics 11th Edition by Michael Parkin

تمرين 17

The Price Level, Inflation, and Deflation
A typical family on Sandy Island consumes only juice and cloth. Last year, which was the base year, the family spent $40 on juice and $25 on cloth. In the base year, juice was $4 a bottle and cloth was $5 a length. This year, juice is $4 a bottle and cloth is $6 a length. Calculate
a. The CPI basket.
b. The CPI in the current year.
c. The inflation rate in the current year.