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Macroeconomics 6th Edition by Robert Hall,Marc Lieberman
Edition 6ISBN: 978-1111822354Macroeconomics 6th Edition by Robert Hall,Marc Lieberman
Edition 6ISBN: 978-1111822354 Exercise 8
(Requires appendix.) An economy has only two 0goods, whose prices and typical consumption quantities are as follows:
a. Using December 2010 as the base period for calculations and also as the year for measuring the typical consumer's market basket, calculate the CPI in December 2010 and December 2011.
b. What is the annual inflation rate for 2011?
c. Do you think your answer in (b) would understate the actual inflation rate in 2011? Briefly, why or why not?
a. Using December 2010 as the base period for calculations and also as the year for measuring the typical consumer's market basket, calculate the CPI in December 2010 and December 2011.
b. What is the annual inflation rate for 2011?
c. Do you think your answer in (b) would understate the actual inflation rate in 2011? Briefly, why or why not?
Explanation
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(a)Consumer Price Index is a measure of ...
Macroeconomics 6th Edition by Robert Hall,Marc Lieberman
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