The people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2019. The average household spent $60 on juice and $30 on cloth in 2019 when the price of juice was $2 a bottle and the price of cloth was $5 a yard. In the current year, 2020, juice is $4 a bottle and cloth is $6 a yard. Calculate the CPI and the inflation rate in 2020. The CPI in 2020 is. >>> Answer to 1 decimal place. ***

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Measuring The Cost Of Living
Section: Chapter Questions
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The
people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2019.
The average household spent $60 on juice and $30 on cloth in 2019 when the price of juice was $2 a bottle and the price of cloth was $5 a yard.
In the current year, 2020, juice is $4 a bottle and cloth is $6 a yard.
Calculate the CPI and the inflation rate in 2020.
The CPI in 2020 is.
>>> Answer to 1 decimal place.
ACCOR
Transcribed Image Text:The people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2019. The average household spent $60 on juice and $30 on cloth in 2019 when the price of juice was $2 a bottle and the price of cloth was $5 a yard. In the current year, 2020, juice is $4 a bottle and cloth is $6 a yard. Calculate the CPI and the inflation rate in 2020. The CPI in 2020 is. >>> Answer to 1 decimal place. ACCOR
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