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In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI has 75 units of food and 20 units of clothing.2002 price for food =$5 clothing = $122003 price for food =$7 and clothing = $18

(a) what are the percentage increases in the price of food and in the price of clothing?

(b) What is the percentage increase in the CPI?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9745425

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