ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Calculate the rate of inflation or delation between 2014 and 2015.
Expert Solution
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Step 1.
Cost of basket, 2014 = 4 x 4 + 6 x 3 + 2 x 5 = 16 + 18 + 10 = 44
Cost of basket, 2015 = 5 x 4 + 8 x 3 + 3 x 5 = 20 + 24 + 15 = 59
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