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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 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.
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.
Explanation
Verified
Verified
a)
We know that the Bureau of Labour Sta...
Macroeconomics 11th Edition by Michael Parkin
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