assume the residents of an economy spend all of, Macroeconomics

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assume the residents of an economy spend all of

Assume the residents of an economy spend all of their income on cauliflower, broccoli and carrots.

In 2003 they buy100 heads of cauliflowers for Rs. 200; 50 bunch of broccoli for Rs. 75 and 500 carrots for Rs. 50. In 2004 they buy 75 heads of cauliflower for Rs. 225; 80 bunches of broccoli for Rs. 120 and 500 carrots for Rs. 100. If the base year is 2003, what is the CPI in both the years?

What is the inflation rate in 2004?

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Macroeconomics: assume the residents of an economy spend all of

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