Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 23, Problem 3IAPA
To determine
To calculate:
The
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The people of Fort Worth buy only juice and cloth. The CPI market basket contains the quantities bought in 2009. The average household spent $60.00 on juice and $30.00 on cloth in 2009 when the price of juice was $2.00 a bottle and the price of cloth was $5.00 a yard. In the current year, 2010, juice is $4.00 a bottle and cloth is $6.00 a yard. Calculate the CPI and inflation rate in 2010. (Note: use formula for finding CPI = (total spending in current year/total spending in base year) x 100 for inflation use formula for change in CPI = (CPI current year – CPI base year/CPI base year) x 100
A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth.
In 2015, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent
$24 on juice and $20 on cloth.
The price of juice in 2015 was $3 a bottle, and the price of cloth was $4 a yard. In 2016, juice is $4 a bottle and cloth is $3 a yard.
Calculate the CPI in 2016 and the inflation rate between 2015 and 2016.
1- The CPI in 2016 is…
2- The inflation rate between 2015 and 2016 is ……percent.
A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth.
In 2015, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent
$18 on juice and $24 on cloth.
The price of juice in 2015 was $2 a bottle, and the price of cloth was $6 a yard. In 2016, juice is $3 a bottle and cloth is $4 a yard.
Calculate the CPI in 2016 and the inflation rate between 2015 and 2016.
Chapter 23 Solutions
Foundations of Economics (8th Edition)
Ch. 23 - Prob. 1SPPACh. 23 - Prob. 2SPPACh. 23 - Prob. 3SPPACh. 23 - Prob. 4SPPACh. 23 - Prob. 5SPPACh. 23 - Prob. 6SPPACh. 23 - Prob. 7SPPACh. 23 - Prob. 8SPPACh. 23 - Prob. 9SPPACh. 23 - Prob. 10SPPA
Ch. 23 - Prob. 1IAPACh. 23 - Prob. 2IAPACh. 23 - Prob. 3IAPACh. 23 - Prob. 4IAPACh. 23 - Prob. 5IAPACh. 23 - Prob. 6IAPACh. 23 - Prob. 7IAPACh. 23 - Prob. 8IAPACh. 23 - Prob. 9IAPACh. 23 - Prob. 10IAPACh. 23 - Prob. 1MCQCh. 23 - Prob. 2MCQCh. 23 - Prob. 3MCQCh. 23 - Prob. 4MCQCh. 23 - Prob. 5MCQCh. 23 - Prob. 6MCQCh. 23 - Prob. 7MCQCh. 23 - Prob. 8MCQ
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