Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $8.00. In year two, the price of the same basket is $7.00.

From year one to year two, there is at an annual rate of (how do i calculate the rate?)
In year one, $40.00 will buy baskets, and in year two, $40.00 will buy .

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