The table below pertains to Iowan, an economy in which the typical consumer's basket consists of 4 pounds of pork and 3 bushels of corn. Year Price of Pork Price of Con 2012 $20 per pound 2013 $25 per pound $12 per bushel $18 per bushel 1. Refer to Table 24-3. What is the cost of the basket in 2012? In 2013? 2. Refer to Table 24-3. With 2012 as the base year, calculate the CPI for 2012 & 2013. What is inflation in 2013? 3. Refer to Table 24-3. With 2013 as the base year, calculate the CPI for 2012 & 2013.

The table below pertains to Iowan, an economy in which the typical consumer's basket consists of 4 pounds of pork and 3 bushels of corn. Year Price of Pork Price of Con 2012 $20 per pound 2013 $25 per pound $12 per bushel $18 per bushel 1. Refer to Table 24-3. What is the cost of the basket in 2012? In 2013? 2. Refer to Table 24-3. With 2012 as the base year, calculate the CPI for 2012 & 2013. What is inflation in 2013? 3. Refer to Table 24-3. With 2013 as the base year, calculate the CPI for 2012 & 2013.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 4QR

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