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The information on price and quantity of three products consumed by a typical household in the year 2020 and 2021 is given by the table
The information on price and quantity of three products consumed by a typical household in the year 2020 and 2021 is given by the table below
| 2020 | 2020 | |||
| Price | Quantity | Price | Quantity | |
| Fish | $5 | 10 | $5.50 | 12 |
| Beef | $10 | 5 | $11 | 4 |
| Train Ride | $8 | 20 | $9 | 22 |
- Using 2020 as the base year, measure the CPI for 2021 and the inflation rate in 2021. Does this inflation rate correctly measure the cost of living changes for households in 2021? Explain.
- "The transfer payment does not have any effect on the gross domestic product of an economy". Discuss the validity of this statement.
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E-Commerce 2013 Business Technology Society
Authors: Ken Laudon, Kenneth C Laudon
9th Edition
0132730359, 978-0132730358
