A Consumer Expenditure Survey in the city of Firestorm shows that people buy only firecrackers and bandages. A Consumer Expenditure Survey in 2016 shows that the average household spent $260 on firecrackers and $7 on bandages. In 2016, the reference base year, the price of a firecracker was $4, and the price of bandages was $1.00 a pack. In the current year, 2017, firecrackers are $7 each and bandages are $1.00 a pack. Calculate the CPI in 2017 and the inflation rate in 2017. or ry >>> Answer to 1 decimal place. The CPI in 2017 is The inflation rate in 2017 is percent. ng
A Consumer Expenditure Survey in the city of Firestorm shows that people buy only firecrackers and bandages. A Consumer Expenditure Survey in 2016 shows that the average household spent $260 on firecrackers and $7 on bandages. In 2016, the reference base year, the price of a firecracker was $4, and the price of bandages was $1.00 a pack. In the current year, 2017, firecrackers are $7 each and bandages are $1.00 a pack. Calculate the CPI in 2017 and the inflation rate in 2017. or ry >>> Answer to 1 decimal place. The CPI in 2017 is The inflation rate in 2017 is percent. ng
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A Consumer Expenditure Survey in the city of Firestorm shows that people buy only firecrackers and bandages.
A Consumer Expenditure Survey in 2016 shows that the average household spent $260 on firecrackers and $7 on
bandages.
In 2016, the reference base year, the price of a firecracker was $4, and the price of bandages was $1.00 a pack.
In the current year, 2017, firecrackers are $7 each and bandages are $1.00 a pack.
ar
Calculate the CPI in 2017 and the inflation rate in 2017.
for
ry
>>> Answer to 1 decimal place.
The CPI in 2017 is
The inflation rate in 2017 is percent.
ng
peg
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