Business, 30.11.2019 04:31 menendezliliana5

Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of tea, one biscuit, and one magazine. in year one, the basket costs $10.00.1. in year two, the price of the same basket is $9.00. is this called inflation or deflation? what is the annual rate of it? 2. how many baskets can $80.00 buy in year one? how many in year two? 3. what happens to the value of money if the price level falls?

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