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Construct a price index for a similar basket of goods

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For each city across Canada, economists construct a price index for a similar basket of goods. In Edmonton (AB) the index is 132.00, and in Thunder Bay (ON) the index is 122.40. If you have been offered $130,000 for a job in Edmonton and $105,000 for a similar job in Thunder Bay, which job offers you the highest purchasing power for the bundle of goods in the price index? Use the Edmonton value as the base.

Reference no: EM132312487

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