The CPI is a fixed-weight index. It compares the price of a fixed bundle of goods in
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The CPI is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in a base year. Calculate the price of a bundle containing 100 units of food, 40 units of utilities, 200 units of unexpected expenses, and 30 units of leisure activities in 2015, 2016, 2017, and 2018. Convert the results into an index by dividing each bundle price figure by the bundle price in 2015 and multiplying it by 100. Calculate the percentage change in your index between 2015 and 2016, between 2016 and 2017, and again between 2017 and 2018.
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Related Book For
Principles Of Macroeconomics
ISBN: 9781292303826
13th Global Edition
Authors: Karl E. Case,Ray C. Fair , Sharon E. Oster
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