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Suppose That Linda Wants to Calculate a Price Index for the Goods

Question 180

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Suppose that Linda wants to calculate a price index for the goods that she commonly purchases each week. The cost of her bundle of goods and services was $350 in 2008, $445 in 1999, and $470 in 2010. If Linda uses 2008 as the base year, what will be the value of her price index for 2008, 2009, and 2010?

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For 2008, the price index will...

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