Mathematics, 20.11.2019 02:31 jdkrisdaimcc11
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of coffee, one donut, and one newspaper. in year one, the basket costs $8.00. in year two, the price of the same basket is $9.00. from year one to year two, there isinflation at an annual rate of12.50% . in year one, $16.00 will buy2 baskets, and in year two, $16.00 will buy1.78 baskets.
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