Given the following table, find the Cost of living Index Number using Aggregate Expenditure Method by completing the activity.

• Therefore Cost of Living Index using Aggregate Expenditure method is
• CLI = (∑p₁q₀) / (∑p₀q₀) × 100
• Therefore Cost of Living Index using Aggregate Expenditure method is
• CLI = □

To calculate the Cost of Living Index (CLI) using the Aggregate Expenditure Method, you need to follow a specific formula. The formula is:

Cost of Living Index Formula

CLI = (∑p₁q₀) / (∑p₀q₀) × 100

Where:

• p₁ = Prices in the current period
• q₀ = Quantities in the base period
• p₀ = Prices in the base period

Steps to Calculate CLI

1. Identify the prices and quantities from your table for both the current and base periods.
2. Calculate the total expenditure for the current period using the formula ∑p₁q₀.
3. Calculate the total expenditure for the base period using the formula ∑p₀q₀.
4. Plug these totals into the CLI formula.

Example Calculation

Assuming you have the following data:

• Current Prices (p₁): 10, 20, 30
• Base Prices (p₀): 5, 15, 25
• Base Quantities (q₀): 2, 3, 4

Now, calculate:

• ∑p₁q₀ = (10*2) + (20*3) + (30*4) = 20 + 60 + 120 = 200
• ∑p₀q₀ = (5*2) + (15*3) + (25*4) = 10 + 45 + 100 = 155

Now substitute these values into the CLI formula:

CLI = (200 / 155) × 100 = 129.03

Thus, the Cost of Living Index using the Aggregate Expenditure Method is approximately 129.03.