Question
Karaoke Machine Karaoke Machine CDs CDs Quantity Price Quantity Price 2020 10 $40 30 $10 2021 12 $60 50 $12 (a) Using a method similar
| Karaoke Machine | Karaoke Machine | CDs | CDs | |
| Quantity | Price | Quantity | Price | |
| 2020 | 10 | $40 | 30 | $10 |
| 2021 | 12 | $60 | 50 | $12 |
(a) Using a method similar to CPI, compute the overall percentage change in the price level. Use 2020 as the base year and consider a basket as 1 Karaoke Machine and 3 CDs (3 points)
(b) Using a method similar to GDP deflator, compute the overall percentage change in the price level. Use 2020 as the base year and consider a basket as 1 Karaoke Machine and 3 CDs (3 points)
Show your work.
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Democracy And Public Administration
Authors: Richard C Box
1st Edition
1317473213, 9781317473213
