The accompanying table shows a utility company's cost to supply a fixedamount of power to a new housing development; the indices are specific to the utility industry. Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the three year period. Year cost 0 $624.000 1 $638.400 2 $677,000 3 $729,500
The accompanying table shows a utility company's cost to supply a fixedamount of power to a new housing development; the indices are specific to the utility industry. Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the three year period. Year cost 0 $624.000 1 $638.400 2 $677,000 3 $729,500
Chapter7: Unemployment And Inflation
Section: Chapter Questions
Problem 3.7P
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The accompanying table shows a utility company's cost to supply a fixed
amount of power to a new housing development; the indices are specific to the utility industry. Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the three year period.
Year cost
0 $624.000
1 $638.400
2 $677,000
3 $729,500
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