The accompanying table shows a utility company's cost to supply a fixedamount of power to a new housing development; the indices are specific to the utility industry. Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the threeyear period. Year Cost 0 $624,0001 $638,4002 $677,0003 $729,500
The accompanying table shows a utility company's cost to supply a fixedamount of power to a new housing development; the indices are specific to the utility industry. Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the threeyear period. Year Cost 0 $624,0001 $638,4002 $677,0003 $729,500
Chapter7: Unemployment And Inflation
Section: Chapter Questions
Problem 3.7P
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The accompanying table shows a utility company's cost to supply a fixed
amount of power to a new housing development; the indices are specific to the utility industry. Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the threeyear period.
Year Cost
0 $624,000
1 $638,400
2 $677,000
3 $729,500
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