. Calculate a fixed weight price index for years 2 and 3 in a three-good economy where year one is the base year. Good Good 1 Good 2 Good 3 Year 2 Year 1 PQP 0.30 10 1.00 0.40 5 0.60 10 0.50 8 0.80 10 Q 5 Year 3 P Q 1.50 7 1.20 8 1.00 15
. Calculate a fixed weight price index for years 2 and 3 in a three-good economy where year one is the base year. Good Good 1 Good 2 Good 3 Year 2 Year 1 PQP 0.30 10 1.00 0.40 5 0.60 10 0.50 8 0.80 10 Q 5 Year 3 P Q 1.50 7 1.20 8 1.00 15
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 12CQ
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Question
B9
![2. Calculate a fixed weight price index for years 2 and 3 in a three-good economy where
year one is the base year.
Good
Good 1
Good 2
Good 3
Year 1
P Q
0.30
10
0.40
5
0.50
8
Year 3
Year 2
PQP
5
1.00
0.60 10
0.80
10
Q
1.50 7
1.20 8
1.00 15](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdda39d79-a516-41bf-b780-70b2757c7104%2Ffb55e6d0-63dc-4bc0-82e1-ab26d36347e5%2F9tsbago_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Calculate a fixed weight price index for years 2 and 3 in a three-good economy where
year one is the base year.
Good
Good 1
Good 2
Good 3
Year 1
P Q
0.30
10
0.40
5
0.50
8
Year 3
Year 2
PQP
5
1.00
0.60 10
0.80
10
Q
1.50 7
1.20 8
1.00 15
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