The table identifies the prices (P1 and P2) of three goods in two different years, and it shows the market basket that is used to calculate the consumer price index. The base year is year 1. Good P1 P2 Basket Milk $4 (gallons) $4.20 6 Chicken $5 (pounds) $5.50 12 Carrots $2 |(bags) $2.40 4 Enter numbers in each blank, rounded to two decimal places as necessary. The value of the CPI in year 1 is The value of the CPI in year 2 is The inflation rate is equal to %.

The table identifies the prices (P1 and P2) of three goods in two different years, and it shows the market basket that is used to calculate the consumer price index. The base year is year 1. Good P1 P2 Basket Milk $4 (gallons) $4.20 6 Chicken $5 (pounds) $5.50 12 Carrots $2 |(bags) $2.40 4 Enter numbers in each blank, rounded to two decimal places as necessary. The value of the CPI in year 1 is The value of the CPI in year 2 is The inflation rate is equal to %.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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