Year | price of meat(per Kg)price of bread(per Kg)price of gas(per lt)housing price(monthly rent of 1bd unit)$10$20S1.5S1000$12S18S1.5$1200Suppose a consumer basket consists of 40 Kg meat, 50 Kg bread, 400 It gas, and aone bedroom apartment for one year. Using the table above, compute the inflationrate in this economy based on CPI between years 1 and 2.10%12%6%17%

Given:- Basket consist= 40 kg meat, 50 kg bread, 400 It gas. To calculate:- Inflation rate based on…

Year | price of meat | price of bread (per Kg price of gas (per lt) housing price (monthly rent of 1 bd unit) (per Kg) $10 $20 S1.3 $1000 $12 S18 S1.5 $1200 Suppose a consumer basket consists of 40 Kg meat, 50 Kg bread, 400 It one bedroom apartment for one year. Using the table above, compute the inflation rate in this economy based on CPI between years 1 and 2. gas, and a 10% 12% 6% 17%

Year | price of meat | price of bread (per Kg price of gas (per lt) housing price (monthly rent of 1 bd unit) (per Kg) $10 $20 S1.3 $1000 $12 S18 S1.5 $1200 Suppose a consumer basket consists of 40 Kg meat, 50 Kg bread, 400 It one bedroom apartment for one year. Using the table above, compute the inflation rate in this economy based on CPI between years 1 and 2. gas, and a 10% 12% 6% 17%

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 3.7P

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Year price of meat (per Kg) price of bread price of gas (per Kg) (per It) housing price (monthly rent of 1 bd unit) $1000 1 $10 $20 $1.5 2 $12 $18 $1.5 $1200 Suppose a consumer basket consists of 40 Kg meat, 50 Kg bread, 400 It gas, and a one bedroom apartment for one year. Using the table above, compute the inflation rate in this economy based on CPI between years 1 and 2. 17% 12% 6% 10%
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