20.In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazines. In 2006, a sandwich cost $4 and a magazine cost $2. In 2007, a sandwich cost $5. The base year is 2006. If the consumer price index in 2007 was 125, then how much did a magazine cost in 2007? a.$0.83 b.$2.25 c.$2.50 d.$3.00 21.Assume an economy experienced a positive rate of inflation between 2003 and 2004 and again between 2004 and 2005. However, the inflation rate was higher between 2004 and 2005 than it was between 2003 and 2004. Which of the following scenarios is consistent with this assumption? Table 2The table below pertains to Iowan, an economy in which the typical consumer’s basket consists of 4 pounds of pork and 3 bushels of corn. Year Price of Pork Price of Corn 2012 $20 per pound $12 per bushel 2013 $25 per pound $18 per bushel 22. Refer to Table 2. The cost of the basket in 2013 was
23. Refer to Table 2. If 2013 is the base year, then the CPI for 2012 was 24. Refer to Table 2. If 2012 is the base year, then the inflation rate in 2013 was a.24.7 percent. b.54.0 percent. c.32.8 percent. d.38.0 percent. 25. Refer to Table 2. If 2013 is the base year, then the inflation rate in 2013 was
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