Illustrate an example of consumer price index, Macroeconomics

Assignment Help:

Illustrate an example of Consumer Price Index

For instance, if we spend twice as much on apples as on pears, apples would have twice the weight in basket. The precise details of composition of basket and how CPI is computed are complicated and vary somewhat between nations. Figure below displays CPI for Germany after reunification starting at January 1991. This data has 2005 as reference year. This means that CPI is constructed in such a way that CPI is exactly equal to 100 on average during 2005.

 

535_CPI.png


Related Discussions:- Illustrate an example of consumer price index

Unemployment rate, I''m having trouble understanding the supply curve

I''m having trouble understanding the supply curve

What is privatization?, Privatization is the move of ownership from the pub...

Privatization is the move of ownership from the public sector (government) to the private sector (business).

Percentage did the price level, By what percentage did the price level, as ...

By what percentage did the price level, as measured by this index, rise between 1984 and 2005?

Calculating interest rates on a yearly basis, Calculating interest rates on...

Calculating interest rates on a yearly basis If the maturity is different from one year, the interest rate is usually recalculated to a corresponding one year rate. For example

Household production, Assume two individuals, A and B, are considering marr...

Assume two individuals, A and B, are considering marriage, and each face the same amount of hours a week to be split between market-labor and home-labor.  Assume that A can make $2

Calculate the average propensity, Question: Table below shows the recen...

Question: Table below shows the recent trends in terms of consumption. (a) (i) Explain what is meant by the term ‘marginal propensity to consume' (MPC) and the ‘averag

Explain the basic characteristics of IS-curve, Q. Explain the basic charact...

Q. Explain the basic characteristics of IS-curve? IS-LM diagram IS-curve The IS curve shows all combinations of R and Y where the goods marketis in

Lagrangian of the consumer, This problem substitutes financial health with ...

This problem substitutes financial health with housing in a 2 period consumption savings model. The representative consumer has the utility function u(c1, c2) = lnc1 + lnc2 with ea

Employment, the production of 200 units of consumer goods and 300 units of ...

the production of 200 units of consumer goods and 300 units of capital goods : a) indicates full employment b) may be a result of unemployment c) may be impossible for now d)

Aggregate supply in the long run, In the short run, the discrepancy between...

In the short run, the discrepancy between actual and expected price level causes changes in output and employment. But in the long run, if all other things remain constant, the hig

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