The table shows the quantities of the goods that Suzie bought and the prices she paid during

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The table shows the quantities of the goods that Suzie bought and the prices she paid during two consecutive weeks. Suzie€™s CPI market basket contains the goods she bought in Week 1. Calculate the cost of Suzie€™s CPI market basket in Week 1 and in Week 2. What percentage of the CPI market basket is gasoline? Calculate the value of Suzie€™s CPI in Week 2 and her inflation rate in Week 2.

Week 2 Price Week I Price Item Quantity (per unit) Quantity (per unit) Il cups |l cups $3.25 Coffee $3.25 DVDS $12.50 $2

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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