Calculating changes in price level

Calculating Changes In Price Level class=

Sagot :

Based on the given costs at the end of each year, the price index for all given years are:

  • 2006 = 100.
  • 2007 = 120.
  • 2008 = 132.

What are the price indexes?

This can be found by the formula:

= Total cost in current year / Total cost in base year x 100

2006 is the base year.

Price index in 2006:

= 1,575 / 1,575 x 100

= 100

Price index in 2007:

= 1,890 / 1,575 x 100

= 120

Price index in 2008:

= 2,079 / 1,575 x 100

= 132

Find out more on price index at https://brainly.com/question/1889164.

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