Determine what is the annual inflation rate for 2011

Assignment Help Econometrics

Reference no: EM13218502

An economy has only two goods, whose prices and typical consumption quantities are as follows: Dec. 2010 Dec. 2011 Price Quantity Price Quantity Fruit (lbs) $1.00 100 $1.00 50 Nuts (lbs) $3.00 50 $4.00 25

a. Using December 2010 as the base period for calculations and also as the year for measuring the typical consumer's market basket, calculate the CPI in December 2010 and December 2011.

b. What is the annual inflation rate for 2011?

c. Do you think your answer in (b) would understate the actual inflation rate in 2011? Briefly, why or why not?

Reference no: EM13218502

Questions Cloud

Find the total transmit signal : Consider an 8-user CDMA system. The data vector of all users is given by [1,1,1,1,-1,-1,-1,1]. Find the total transmit signal.

What is the range of the sensor voltage outputs initially : a. What is the range of the sensor voltage outputs initially and finally? b. What range of voltages would be expected to be measured 2 sec after the step change is applied?

What are the transfer function : What are the transfer function and the impulse response of the system?

How much did aggregate consumption increase : According to the News on page 238, how much more did the average household spend on appliances, electonics, and furniture when it received the 2008 tax rebate? (b) If all 110 million households did so, how much did aggregate consumption increase

Determine what is the annual inflation rate for 2011 : An economy has only two goods, whose prices and typical consumption quantities are as follows: Dec. 2010 Dec. 2011 Price Quantity Price Quantity Fruit (lbs) $1.00 100 $1.00 50 Nuts (lbs) $3.00 50 $4.00 25 a. Using December 2010 as the base period f..

What is the threshold level of this system : calculate the average signal-to-noise (SNR) in decibels (dB) Assume equal numbers of binary 0s and 1s.

Determine the awg size of the extension cord : The resistance per 304.8 m of copper wire uses in the extension cord of AWG 14,12,10,8 and 6 are 2.58,1.62, 1.02, 0.64 and 0.41 respectively. Assume a 2% allowable voltage drop. Show all working .

Write down all of the frequency components : Four frequencies are applied at the input of a non-linear amplifier. Write down all of the frequency components at the output of the non-linear device. Write down only the first three harmonics.

What kind of wireless networking alternative : What kind of wireless networking alternative makes the most sense when considering network links that span an appreciable portion of the globe?

User Account

All Pages