Compute the cpi and inflation rate, Econometrics

Assignment Help:

In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI has 50 units of food and 10 units of clothing.

                        food    clothing

2002 price           $4        $10

2003 price           $6        $20

a. What are the percentage increases in the price of food and in the price of clothing?

b. What is the CPI for 2002?

c. What is the CPI for 2003?

c. What is the inflation rate using 2002 as the base year?

c. Do these price changes affect all consumers to the same extent? Explain.

 

 


Related Discussions:- Compute the cpi and inflation rate

Goal for development, How can a person achieve his goal for development?Exp...

How can a person achieve his goal for development?Explain it with 5 examples.

Firm''s profit function, A  firm manufactures  and  sells  a  product  that...

A  firm manufactures  and  sells  a  product  that  has  the  following  demand function:       Q = 180 - 4P   where P  is price, Q  is quantity.  It also  faces  the  following

Exam prep, Females, it is said, make 70 cents to the dollar in the United S...

Females, it is said, make 70 cents to the dollar in the United States. To investigate this phenomenon, you collect data on weekly earnings from 1,744 individuals, 850 females and

Estimate a var involving equations, Question 1: a)  Explain what is a V...

Question 1: a)  Explain what is a VAR giving an example both in the form of an equation and matrix. Discuss its benefits and limitations. b)  How can we estimate a VAR invol

Identification problem, #question.elaborate the different methods for the e...

#question.elaborate the different methods for the estimation of simultaneous equation model in case of exact and over identification?

Factors of production, how can the factors of production be occupationally ...

how can the factors of production be occupationally mobile

Equilibrium conditions for three related markets , The equilibrium conditio...

The equilibrium conditions for three related markets are given by:  (a)Write this system of equations in matrix notation of the form  Ax = B.  (b)  Find the determinant

.the matrix of technical coefficients., I could not understand the matrix o...

I could not understand the matrix of technical coefficents

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd