The total price of purchasing a basket of goods in the United States over four years is: year 1-$940, year 2=$970, year 3=$1000, and year 4=$1070. Using year 2 as the base year, calculate the value of the price index in year 4.

The total price of purchasing a basket of goods in the United States over four years is: year 1-$940, year 2=$970, year 3=$1000, and year 4=$1070. Using year 2 as the base year, calculate the value of the price index in year 4.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The total price of purchasing a basket
of goods in the United States over four
years is: year 1=$940, year 2=$970,
year 3=$1000, and year 4=$1070.
Using year 2 as the base year,
calculate the value of the price index in
year 4.

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