2. The market basket of goods for a typical consumer includes 200 gallons of gas, 50...

 

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2. The market basket of goods for a typical consumer includes 200 gallons of gas, 50 gallons of milk, and 40 loaves of bread. The base year is 2017. Table 6.1 Year Price of Gas Price of Milk 2016 $2.75 2017 $3.00 2018 $3.15 $2.50 $2.50 $2.75 a). Calculate the CPI for 2017 and 2018. [1.25x2=2.5 pts] b). Calculate the inflation rate from 2017 to 2018. [1.5 pts] Price of Bread $1.50 $1.65 $1.75 2. The market basket of goods for a typical consumer includes 200 gallons of gas, 50 gallons of milk, and 40 loaves of bread. The base year is 2017. Table 6.1 Year Price of Gas Price of Milk 2016 $2.75 2017 $3.00 2018 $3.15 $2.50 $2.50 $2.75 a). Calculate the CPI for 2017 and 2018. [1.25x2=2.5 pts] b). Calculate the inflation rate from 2017 to 2018. [1.5 pts] Price of Bread $1.50 $1.65 $1.75

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a CPI for 2017 and 2018 To calculate the CPI well use the following formula ... View the full answer