Product Quantity Price Year 1 Cereal 1,000 $1.00 Beef 700 $2.00 Doughnuts 600 $0.50 Year 2 Cereal 1,400 $1.10 Beef 600 $2.50 Doughnuts 500 $0.75 If year 1 is the base year, what is the inflation rate between year 1 and 2?

Product Quantity Price Year 1 Cereal 1,000 $1.00 Beef 700 $2.00 Doughnuts 600 $0.50 Year 2 Cereal 1,400 $1.10 Beef 600 $2.50 Doughnuts 500 $0.75 If year 1 is the base year, what is the inflation rate between year 1 and 2?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 3.7P

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Question

Product	Quantity	Price
Year 1	Cereal	1,000	$1.00
Beef	700	$2.00
Doughnuts	600	$0.50
Year 2	Cereal	1,400	$1.10
Beef	600	$2.50
Doughnuts	500	$0.75

If year 1 is the base year, what is the inflation rate between year 1 and 2?

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