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Suppose the price index is 130 and a typical basket of goods and services cost 520.What would this typical basket have cost in the base year?If the CPI changes from 110 in 1993 to 120 in 1994, what is the rate of inflation?

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The solution calculates the cost of typical basket of goods in the base year and the rate of inflation.

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Suppose the price index is 130 and a typical basket of goods and services cost 520.What would this typical basket have cost in the base year?If the CPI changes from 110 in ...

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