Country A produced the following quantity of gauges and potatoes: 2001 2002 Good Gauges Quantity Price Quantity Price 8000 $4 10000 $3 Potatoes 6000 $8 5000 $14 a. Using 2001 as the base year, what are the price indexes for 2001 and 2002? b. What is the inflation rate using this index? C. What is the percent change in real output using this index?
Country A produced the following quantity of gauges and potatoes: 2001 2002 Good Gauges Quantity Price Quantity Price 8000 $4 10000 $3 Potatoes 6000 $8 5000 $14 a. Using 2001 as the base year, what are the price indexes for 2001 and 2002? b. What is the inflation rate using this index? C. What is the percent change in real output using this index?
Chapter1: Making Economics Decisions
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Transcribed Image Text:Country A produced the following quantity of gauges and potatoes:
2001
2002
Good
Gauges
Quantity
Price
Quantity
Price
8000
$4
10000
$3
Potatoes 6000
$8
5000
$14
a. Using 2001 as the base year, what are the price indexes for 2001 and 2002?
b. What is the inflation rate using this index?
C. What is the percent change in real output using this index?
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