Order the answer to: Government survey takers determine that typical family expenditures each month

Custom Essays business economics Order the answer to: Government survey takers determine that typical family expenditures each month

business economics

Order the answer to: Government survey takers determine that typical family expenditures each month

Question Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows:
20 pizzas at $10 each
Rent of apartment, $600 per month
Gasoline and car maintenance, $100
Phone service (basic service plus 10 long-distance calls), $50
In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $640, gasoline and maintenance have risen to $120, and phone service has dropped in price to $40. (LOl)
a. Find the CPI in the subsequent year and the rate of inflation between the base year and the subsequent year.
b. The family’s nominal income rose by 5 percent between the base year and the subsequent year. Are they worse off or better off in terms of what their income is able to buy?
Subject business economics
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