your rate may vary.a) suppose a student in 2007 estimated that her expenses were distributed among the CPI categories as listed in Table 5.6. (She had no housing expenses since she lived at home.) Calculate the inflation rate she would have experienced relative to the year before. b) compare the answer in (a) to the northeast urban average of 2.58% and explain why the rate the student experienced was higher or lower. Table 5.2. Consumer Price Index market basket5.6CategoryWeight (%)2006-2007 change (%)Food and beverages15.0094.0HousingApparelTransportationMedical care44.3773.03.697-1.516.0301.25.7804.8Recreation5.387-0.4Education and communication6.4552.7Other goods and services3.265Hot 29 2.6 E3All items1002.58 Weight (%) 2006–2007 change (%)Table 5.6. How one student spent her incomeCategoryFood and beverages154.00.3.0HousingApparelTransportationMedical care15-1.5amuulov251.254.81.190.4VASUIRITAS 2.7 MRecreation-Education and communication15Other goods and services152.6All items100olg

Inflation refers to the gradual rise in general price level in an economy over a period of time .…

a) suppose a student in 2007 estimated that her expenses were distributed among the CPI categories as listed in Table 5.6. (She had no housing expenses since she lived at home.) Calculate the inflation rate she would have experienced relative to the year before. b) compare the answer in (a) to the northeast urban average of 2.58% and explain why the rate the student experienced was higher or lower.

a) suppose a student in 2007 estimated that her expenses were distributed among the CPI categories as listed in Table 5.6. (She had no housing expenses since she lived at home.) Calculate the inflation rate she would have experienced relative to the year before. b) compare the answer in (a) to the northeast urban average of 2.58% and explain why the rate the student experienced was higher or lower.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter18: Income Distribution And Poverty

Section: Chapter Questions

Problem 4QFR

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