Find the cpi in the subsequent year

Assignment Help Macroeconomics

Reference no: EM13188212

Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows:

25 pizzas at $10 each
Rent of apartment, $600 per month
Gasoline and car maintenance, $100
Phone service (basic service plus 10 long-distance calls), $50

In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $700, gasoline and maintenance have risen to $120, and phone service has dropped in price to $40.

a) Find the CPI in the subsequent year and the rate of inflation between the base year and the subsequent year.

Reference no: EM13188212

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