1. Suppose typical urban households bought their basket of consumer goods and services for $20,000 in the base year and in the current year they have to spend $64,000 for that same basket. Calculate current year CPI. (Show your work) (64,000/20,000)X100- CPI- 320 2. What does the CPI you found in Q1 tell you about how much prices changed from the base year to the current year?

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A: A consumer price index tends to measure the changes in the level of price of a weighted average…

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A: The average change in consumer prices over time for a representative basket of goods and services is…

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A: The formula to calculate CPI ( consumer price index) is

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A: Consumer price index measures the basket of goods as fixed in the base year.

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A: The Consumer Price Index(CPI) is a measure of the average change in prices of a basket of goods and…

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A: CPI is measured using fixed basket of goods.

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A: CPI is the consumer price index. The CPI is used to calculate the inflation rate. The CPI is…

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A: CPI is measured using fixed basket of goods.

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A: To calculate the amount spent on each fruit in each year, multiply the quantity of fruit by the…

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