The table shows the quantities of the goods that Harry bought and the prices he paid during

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The table shows the quantities of the goods that Harry bought and the prices he paid during two consecutive weeks. Harry€™s CPI market basket contains the goods he bought in Week 1. Calculate Harry€™s CPI in Week 2. What was his inflation rate in Week 2?

Week I Price Week 2 Price Quantity (per unit) Quantity (per unit) 5 cups Item Coffee 4 cups $3.25 $3.00 iTune songs $1.0

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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