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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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
Transcribed Image Text:Base year (2010)
Current year (2018)
Products
Quantity
Price
Quantity
Price
Dog Chow
120
$10
125
$11
Chew Toys
200
$4
150
$5
Refer to the table above. Assume the market basket for the consumer price index has two products – dog chow and chew toys. Assume the Base Year quantities are also the market basket
quantities for calculating the Consumer Price Index. It follows that the Consumer Price Index for 2018 equals:
Select one:
106
Ob.
116
194
O d. 166
Clear my choice

Transcribed Image Text:Refer back to the previous problem. Suppose that between 2010 and 2018 your annual salary increased from $60,000 to S66,000. It follows that the economy experienced
and your real
income
(Note: If nominal income grow slower than CPI, real income decreases.)
Select one:
Oa.
inflation; increased
O b
deflation; decreased
inflation; decreased
O d. deflation; increased
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