Suppose in the base year a typical market basket purchased

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Suppose in the base year, a typical market basket purchased by an urban family cost $250. In year 1, the same market basket cost $950. What is the consumer price index (CPI) for year 1? If the same market basket cost $1,000 in year 2, what is the CPI for year 2? What was the annual rate of inflation for year 2?

Reference no: EM13617875

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