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Macroeconomics Assignment | Homework For You

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1) Assume there is a simple economy where people consume only 2 goods, food and clothing. Further assume that the market basket of goods used to compute the CPI consists of 100 units of food and 20 units of clothing. Food    Clothing 2004 price per unit    $8    $20 2005 price per unit    $12    $40 a.    Compute the percentage changes in the price of food and …

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