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(Solved): Use the information in the table to calculate a consumer price index (CPI) and the inflation rate. ...
Use the information in the table to calculate a consumer price index (CPI) and the inflation rate. The base year is 1975 . Round answers to two decimal places. What is the CPI for 1975 ? What is the CPI for \( 1976 ? \) What is the inflation rate for 1976 ?
Expert Answer
Answer : cost of basket current year price = current year quantity × current year price 1975 = (22 × $0.7)