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6. A small nation of ten people idolizes the TV show The Bachelor. The only products they produce and consume are limous
Posted: Sat Feb 19, 2022 2:43 pm
by answerhappygod
- 6 A Small Nation Of Ten People Idolizes The Tv Show The Bachelor The Only Products They Produce And Consume Are Limous 1 (32.98 KiB) Viewed 47 times
6. A small nation of ten people idolizes the TV show The Bachelor. The only products they produce and consume are limousines and roses in the following amounts: Roses Limousines Quantity 10 12 2020 2021 Price $40 $60 Quantity 30 50 Price $10 $12 (a). Using a method similar to the CPI, compute the percentage change in the overall price level from 2020 to 2021 (Use 2020 as the base year and fix the basket at 1 limousine and 3 roses). (b). Using a method similar to the GDP deflator, compute the percentage change in the overall price level from 2020 to 2021 (Also use 2020 as the base year). (c). Is the inflation rate in 2021 the same using the two methods? Explain why or why not. I