The Inflation Rate Is A Percentage Increase In The Overall Price Level The Latter Can Be Tracked By A Consumer Price In 1 (195.33 KiB) Viewed 42 times
The inflation rate is a percentage increase in the overall price level. The latter can be tracked by a consumer price index that refers to a price index computed each month by the Bureau of Statistics using a bundle that is meant to represent the "market basket" purchased monthly by a typical urban consumer. The table below contains data on the "Banana Island", in addition to that the typical urban consumer purchases only three goods A, B, and C. Suppose 2018 is the base year. Then, use this information to answer the questions that follow: Units (Q) Price per unit in (Dhs) Goods Purchased 2017 2018 2020 In 2018 A 5.4 6.5 B 3.4 4.4 C 2.4 2.9 257 5 3 2 2019 5.8 3.8 2.6
A. Calculate the cost of the purchased bundle of goods in 2018 B. Calculate the cost of the purchased bundle of goods in 2019 C. Calculate the consumer price index in 2018 D. Estimate the consumer price index in 2019 E. Predict the inflation rate in 2019
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