A typical family on Sandy Island consumes only juice and cloth. Last year, which was the base year, the family spent $40 on juice and $20 on cloth. In the base year, juice was $4 a bottle and cloth was $5 a length. This year, juice is $8 a bottle and cloth is $2.5 a length. Calculate a. The CPI basket. b. The CPI in the current year. c. The inflation rate in the current year.
A typical family on Sandy Island consumes only juice and cloth. Last year, which was the base year, the family spent $40 on juice and $20 on cloth. In the base year, juice was $4 a bottle and cloth was $5 a length. This year, juice is $8 a bottle and cloth is $2.5 a length. Calculate a. The CPI basket. b. The CPI in the current year. c. The inflation rate in the current year.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A typical family on Sandy Island consumes only juice and cloth. Last year, which was the base year, the family spent $40 on juice and $20 on cloth. In the base year, juice was $4 a bottle and cloth was $5 a length. This year, juice is $8 a bottle and cloth is $2.5 a length. Calculate
a. The CPI basket.
b. The CPI in the current year.
c. The inflation rate in the current year.
I'm not sure if the final answer is 50 or -50, please help by showing the steps.
Don't answer by pen paper and don't use chatgpt otherwise we will give dounvote
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