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An index of clothing prices for 2006 based on 1985 is to be constructed. The prices for 1985 and 2006 and the quantity consumed in 1985 are shown next. Assuming that the number sold remained constant , what is the weighted index of price for 2006 using 1985 as the base?
Domestic Goods
Products that are manufactured within a country's borders, as opposed to goods imported from other countries.
Foreign Goods
Products that are produced in one country and then imported and sold in another country.
Nominal Exchange Rate
The rate at which one country's currency can be exchanged for another country's currency, without adjusting for inflation differences between the two countries.
Italian Goods
Products or merchandise that are manufactured, produced, or originated from Italy.
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