The country of Myrule has produced the following quantity of gauges and potatoes,with the price of each listed in dollar terms:
$$\begin{array} { l c c c c }
& 2001 && { 2002 } \
\hline \text { Good } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Gauges } & 8000 & \$ 4 & 10000 & \$ 3 \
\text { Potatoes } & 6000 & \$ 8 & 5000 & \$ 14 \
\hline
\end{array}$$
a.Using 2001 as the base year,what are the price indexes for 2001 and 2002?
b.What is the inflation rate using this index?
c.What is the percent change in real output using this index?

Question

The country of Myrule has produced the following quantity of gauges and potatoes,with the price of each listed in dollar terms:
 $$\begin{array} { l c c c c } 
& 2001 && { 2002 } \
\hline \text { Good } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Gauges } & 8000 & \$ 4 & 10000 & \$ 3 \
\text { Potatoes } & 6000 & \$ 8 & 5000 & \$ 14 \
\hline
\end{array}$$ 
a.Using 2001 as the base year,what are the price indexes for 2001 and 2002?
b.What is the inflation rate using this index?
c.What is the percent change in real output using this index?

Quizplus · Accepted Answer

The Answer of The country of Myrule has produced the following quantity of gauges and potatoes,with the price of each listed in dollar terms:
 $$\begin{array} { l c c c c } 
& 2001 && { 2002 } \
\hline \text { Good } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Gauges } & 8000 & \$ 4 & 10000 & \$ 3 \
\text { Potatoes } & 6000 & \$ 8 & 5000 & \$ 14 \
\hline
\end{array}$$ 
a.Using 2001 as the base year,what are the price indexes for 2001 and 2002?
b.What is the inflation rate using this index?
c.What is the percent change in real output using this index?

The Country of Myrule Has Produced the Following Quantity of Gauges