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 $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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education