The following table gives the CPIbasket for 2000 and 2001. Suppose that 2000 isthe reference base period:ItemQuantityPricePrice(2000)(2000)(2001)Oranges50$0.90$0.75Bananas100$0.50$0.95Chicken200$2.00$2.50Beef100$5.00$4.80Bread300$1.75$2.00a. What is the cost of the CPI basket in 2000?b. What is the cost of the CPI basket in 2001?c. What is the CPI for 200O?

here we calculate the cost of the CPI basket and CPI of the following year which are as follow-

Answered: a. What is the cost of the CPI basket…

a. What is the cost of the CPI basket in 2000? b. What is the cost of the CPI basket in 2001? c. What is the CPI for 200O?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Macroeconomic Measurements, Part I: Prices And Unemployment

Section: Chapter Questions

Problem 9WNG

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Question

The following table gives the CPI
basket for 2000 and 2001. Suppose that 2000 is
the reference base period:
Item
Quantity
Price
Price
(2000)
(2000)
(2001)
Oranges
50
$0.90
$0.75
Bananas
100
$0.50
$0.95
Chicken
200
$2.00
$2.50
Beef
100
$5.00
$4.80
Bread
300
$1.75
$2.00
a. What is the cost of the CPI basket in 2000?
b. What is the cost of the CPI basket in 2001?
c. What is the CPI for 200O?

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