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Calculating CPI from Basket Data
An economy's fixed consumer basket consists of 10 apples and 5 oranges. In the base year, apples cost $1.00 each and oranges cost $2.00 each. In the current year, the price of apples has risen to $1.50 and the price of oranges has risen to $2.20. What is the Consumer Price Index (CPI) for the current year?
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Introduction to Macroeconomics Course
Ch.4 Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Formula for a Price Index
Suppose the total cost of a fixed basket of consumer goods and services was $200 in the base year and $250 in the current year. Using this information, what is the value of the price index for the current year?
Analyzing Annual Price Changes
Calculating CPI from Basket Data
A country's economic analysts determine that the total cost of a representative basket of consumer goods was $500 in the designated base year. In the following year, the total cost for the exact same basket of goods fell to $450. Based on this data, the price index for the following year would be greater than 100.