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Title: Assume that after you graduate, you move to a simple economy in which only three goods are produced Post by: Loraine on Jun 21, 2015 Assume that after you graduate, you move to a simple economy in which only three goods are produced and consumed: fish, fruit, and meat. Suppose that on January 1, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per pound. At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $1.50 per pound, and meat prices had actually fallen to $2.00. Can you say what happened to the overall CPI, in terms of whether it increased, decreased, or stayed the same? Do you have enough information to calculate the inflation rate? Note, this problem requires no calculation; just state and explain your answers.
Title: Re: Assume that after you graduate, you move to a simple economy in which only three goods are produ Post by: Chimelo46 on Jul 16, 2015 Content hidden
Title: Re: Assume that after you graduate, you move to a simple economy in which only three goods are produced Post by: Chimelo46 on Aug 31, 2015 The textbook reference in your signature really helped me narrow it down.
Happy to help ;) |