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Unformatted text preview: c. The production of goods and services increased in Quiriquire throughout the period. d. All of the above are correct. 3. What is the inflation rate for 2006? Show your work. Use table 2 below to answer questions 4 - 6. Table 2 Year Price of pork Price of corn 2005 $20 $12 2006 $25 $18 4. Suppose the basket of goods in the CPI consisted of 3 units of pork and 4 units of corn. What is the consumer price index for 2006 if the base year is 2005? 5. Suppose the basket of goods in the CPI consisted of 3 units of pork and 4 units of corn. What is the inflation rate for 2006 if the base year is 2005? 6. Using your result from the previous questions, is the inflation rate for 2006 the same if you use 2006 as the base year? Show your work....
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This note was uploaded on 04/07/2008 for the course BSAD ECON 040 011 taught by Professor Boveemora during the Spring '08 term at Vermont.
- Spring '08