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Suppose That the Basket of Goods Purchased by the Typical

Question 63

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Suppose that the basket of goods purchased by the typical consumer cost $222.50 in 2015, it cost $177.80 in 2014, and it cost $145.25 in the base year. Calculate the CPI for 2015 and for 2014, and calculate the inflation rate from 2014 to 2015.

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CPI for 2015 = (222.50 / 145.2...

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