Question
Suppose the fixed basket of goods used to calculate the CPI consists of 4 units of good A, 3 units of good B, and 2
Suppose the fixed basket of goods used to calculate the CPI consists of 4 units of good A, 3 units of good B, and 2 units of good C. From year 1 to year 2 the prices of the goods changed as shown in the table. Year 1 is the base year.
|
| Price in year 1 | Price in year 2 |
| Good A | $2.50 | $2.80 |
| Good B | $3.50 | $3.71 |
| Good C | $5.80 | $6.67 |
The cost of the basket in year 1 is $
The cost of the basket in year 2 is $
The CPI value in year 1 is
The CPI value in year 2 is
Enter numbers rounded to two decimal places.
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Accounting Information Systems
Authors: George H. Bodnar, William S. Hopwood
8th Edition
0130861774, 9780130861771
