Compute the cpi and inflation rate, Econometrics

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.



Posted Date: 2/27/2013 8:18:16 AM | Location : United States

Related Discussions:- Compute the cpi and inflation rate, Assignment Help, Ask Question on Compute the cpi and inflation rate, Get Answer, Expert's Help, Compute the cpi and inflation rate Discussions

Write discussion on Compute the cpi and inflation rate
Your posts are moderated
Related Questions
ear Sir/Madam, I need somebody to implement the followintg models and test: Plot the variables studied Test for a unit root of all my variables using the ADF (p) tests for the le

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

(b) Suppose that the initial conditions are as follows: y0 = 0 and et = 0 for t= 0. Impose the initial conditions in order to find the general solution.

What''s the relationship between economic efficiency and technical efficiency

(a) What is a white noise process? (b) Distinguish between exogenous and endogenous variables, using examples. (c) What do you understand by simultaneity bias and can OLS

Given the demand function Qd = 650-5P-P2 where P=10 Find out the price elasticity of demand.

advantages and disadvantages

Currently the stock of Backstreet Toys (BT) is selling for $20 per share and the risk free rate is5%. a) Draw a payoff diagram for each of the following 3 portfolios: i. Buy

In the United States, a buyer of a new electric is eligible for a one-time federal income tax credit of up to $4,000. Show the effect of this tax credit graphically, assuming the $

Need to run MGARCH (system) in SAS or other software. Have data.