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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 5
Use the following information to work Problem.
The people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2012. The average household spent $60 on juice and $30 on cloth in 2012 when the price of juice was $2 a bottle and the price of cloth was $5 a yard. In the current year, 2013, juice is $4 a bottle and cloth is $6 a yard.
Calculate the CPI basket and the percentage of the household's budget spent on juice in 2012.
The people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2012. The average household spent $60 on juice and $30 on cloth in 2012 when the price of juice was $2 a bottle and the price of cloth was $5 a yard. In the current year, 2013, juice is $4 a bottle and cloth is $6 a yard.
Calculate the CPI basket and the percentage of the household's budget spent on juice in 2012.
Explanation
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Table-1 shows the details of price and q...
Macroeconomics 11th Edition by Michael Parkin
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