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The following table pertains to Jouetpays, an economy in which the typical consumer's basket consists of 13 pounds of prunes and 6 dolls. Table 25-2.
The following table pertains to Jouetpays, an economy in which the typical consumer's basket consists of 13 pounds of prunes and 6 dolls. Table 25-2. Year Price for Prunes, $ Price of Dolls, $ 1 12 8 2 10 6 3 11 10 Refer to Table 25-2. If the base year is Year 1, then the CPI in Year 2 was a. 122.9. b. 99.5. c. 81.8. d. 81.4. If the consumer price index was 100 in Year 1, 123 in Year 2, and 131 in Year 3, then the base year must be a. Year 3. b. Year 1. c. Year 2. d. the base year cannot be determined from the given information. The price index was 110 in Year 1 and 114 in Year 2. What was the inflation rate? a. 3.6 percent b. 0.036 percent c. -3.6 percent d. 103.6 percent The inflation rate is defined as the a. price level in an economy. b. change in the price level from one period to the next. c. percentage change in the price level from the previous period. d. price level minus the price level from the previous period. . When the quality of a good improves
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