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21-10-2020
Computers and Technology

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EV = 225, PV = 200, AC = 255. What is CPI? What does this calculation tell you?

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21-10-2020

Answer:

CPI = EV / AC

225 / 255 = 0.88235

This tells you the measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods

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