Question
A market basket is made up of three goods, 95X, 140Y, and 210Z. The prices in year one are $1, $2, and $3.50, respectively. The
A market basket is made up of three goods, 95X, 140Y, and 210Z. The prices in year one are $1, $2, and $3.50, respectively. The prices in year two are $1.25, $2.42, and $4.15 Assume year one to be the base year: Calculate the CPIs for each year.
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz
11th Edition
134519574, 9780134521046 , 978-0134519579
