3. The people on Coral Island buy only juice and cloth. The CPI market basket contains the...

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3. The people on Coral Island buy only juice and cloth. The CPI market basket contains the quantities bought in 2010. The average household spent $60 on juice and $30 on cloth in 2010 when the price of juice was $2 a bottle and the price of cloth was $5 a yard. In the current year, 2011, juice is $4 a bottle and cloth is $6 a yard. Calculate the CPI and the inflation rate in 2011.

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Essential Foundations Of Economics

ISBN: 9780520219465

7th Global Edition

Authors: Bade, Robin;Parkin, Michael

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