Advanced Placement (AP), 26.03.2021 14:00 jasminecoronetti44
Henry is an economist and wants to understand the relationship between inflation and consumer spending habits. For his research, he needs
the Consumer Price Index for 2014 and the inflation rate. Based on the prices of goods given, what will he find to be the CPI and inflation rate for
2014? Assume that a consumer's basket for three consecutive years consists of the following:
Year
of Price of an Apple
Number of Apples
Number of Oranges
Consumed
Price of an Orange
Consumed
2012
2
3
3
2
2013
3
2
4
2014
5
Consider 2012 to be the base year.
OA
100 CPI, 49.56 percent inflation
© B.
165 CPI, 45.40 percent inflation
O C.
185 CPI, 55.35 percent inflation
O D.
175 CPI, 60.56 percent inflation
O E.
125 CPI, 50.60 percent inflation
Answers: 2
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Henry is an economist and wants to understand the relationship between inflation and consumer spendi...
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