ECN 111 Chapter 7 Lecture Notes
To calculate the CPI, the cost of the CPI basket at base period prices and the cost of the CPI basket at current period prices is needed. 2. The CPI = F. Measuring Inflation. 1. The . inflation rate. is the percentage change in the price level from one year to the next. 2. The inflation rate = 3. When the price level rises rapidly, the inflation rate is high. When the price level rises slowly ... ................
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