5. Suppose the people of one nation are huge football fans and the only items they consume are wings and beer. They consume them in the following amounts. Using 2015 as the base year, calculate the price index for 2016. Market Basket 2015 Price 2016 Price Quantity Wings $6 $10 $7 $12 3 Beer 2 6. Use the below CPI data for the following questions: Year CPI 1967 33.4 1997 160.5 a. What was the inflation rate? b. What would something that cost $45 dollars in 1967 cost in 1997?

5. Suppose the people of one nation are huge football fans and the only items they consume are wings and beer. They consume them in the following amounts. Using 2015 as the base year, calculate the price index for 2016. Market Basket 2015 Price 2016 Price Quantity Wings $6 $10 $7 $12 3 Beer 2 6. Use the below CPI data for the following questions: Year CPI 1967 33.4 1997 160.5 a. What was the inflation rate? b. What would something that cost $45 dollars in 1967 cost in 1997?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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