Question
In an economy, people consume only 2 goods, food, and clothing. The fixed market basket of goods used to compute the CPI consists of 100
In an economy, people consume only 2 goods, food, and clothing. The fixed market basket of goods used to compute the CPI consists of 100 units of food and 50 units of clothing.
2002 price per unit
Food: $4
Clothing: $10
2003 price per unit
Food: $8
Clothing: $20
What is the percentage increase in the CPI?
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The Worldly Philosophers The Lives, Times And Ideas Of The Great Economic Thinkers
Authors: Robert L Heilbroner
7th Edition
068486214X, 9780684862149
