Please confirm my answer and justify! Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's costwas S77: in 2013. the basket's cost was $82; and in 2014, the basket's cost was $90. The value of the CPI in 2014 wasO a. 109.8 and the inflation rate was 9.8%.O b. 109.8 and the inflation rate was 16.9%.O c. 116.9 and the inflation rate was 9.8.O d. 116.9 and the inflation rate was 16.9%.

"CPI in economics measure changes in the price levels over time that a reference population uses and…

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was S77; in 2013, the basket's cost was S82; and in 2014, the basket's cost was $90. The value of the CPI in 2014 was a. 109.8 and the inflation rate was 9.8%. b. 109.8 and the inflation rate was 16.9%. O .116.9 and the inflation rate was 9.8%. d. 116.9 and the inflation rate was 16.9%.

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was S77; in 2013, the basket's cost was S82; and in 2014, the basket's cost was $90. The value of the CPI in 2014 was a. 109.8 and the inflation rate was 9.8%. b. 109.8 and the inflation rate was 16.9%. O .116.9 and the inflation rate was 9.8%. d. 116.9 and the inflation rate was 16.9%.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 34P: The total price of purchasing a basket of goods in the United Kingdom over four years is: year...

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