Suppose, in the base year, a typical market basket purchased by an urban family costs $250. In Year 1, the same market basket cost $950. What is the consumer price index (CPI) for Year 1? If the same market basket costs $1,000 in Year 2, what is the CPI for Year 2? What was the Year 2 rate of inflation?

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Q: consumer price index

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Q: Suppose, in the base year, a typical market basket purchased by an urban family costs $250. In Year…

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