For a simple economy with three goods sold in quantities and at prices as given in the table. If the basket of goods used to define CPI is 7 of good A, 8 of good B and 9 of good C calculate the rate of inflation over the year to the nearest percentage point: Good A Good B Good C Quantity in year 1 50 90 70 Price in year 1 1.1 0.9 0.7 Quantity in year 2 75 105 100 Price in year 2 1.4 1.2 1.7 Select one: O a. 21 O b. 47 O c. 69 O d. 64

For a simple economy with three goods sold in quantities and at prices as given in the table. If the basket of goods used to define CPI is 7 of good A, 8 of good B and 9 of good C calculate the rate of inflation over the year to the nearest percentage point: Good A Good B Good C Quantity in year 1 50 90 70 Price in year 1 1.1 0.9 0.7 Quantity in year 2 75 105 100 Price in year 2 1.4 1.2 1.7 Select one: O a. 21 O b. 47 O c. 69 O d. 64

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Measuring The Cost Of Living

Section: Chapter Questions

Problem 4QR

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Similar questions

Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the GDP deflator to convert from nominal to real would be more appropriate than using the CPI.
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