How to calculate inflation rate, Macroeconomics

Assignment Help:

Assume the residents of an economy spend all of their income on cauliflower, broccoli and carrots.

In 2003 they buy100 heads of cauliflowers for Rs. 200; 50 bunch of broccoli for Rs. 75 and 500 carrots for Rs. 50. In 2004 they buy 75 heads of cauliflower for Rs. 225; 80 bunches of broccoli for Rs. 120 and 500 carrots for Rs. 100. If the base year is 2003, what is the CPI in both the years?

What is the inflation rate in 2004?

 


Related Discussions:- How to calculate inflation rate

Relationship with 8 variants of national product aggregates, RELATIONSHIP W...

RELATIONSHIP WITH 8 VARIANTS OF NATIONAL PRODUCT AGGREGATES  We have shown the distinction between national product at market prices and national product at factor cost, based

Explain the term- inventory investment, Explain the term- inventory investm...

Explain the term- inventory investment We would have a negative inventory investment whenever inventories decrease. By net investments we mean gross investments minus depreciat

Keynesian cross in an open economy, why does the price level not enter desi...

why does the price level not enter desire consumption, investment and net exports of the desired aggregate expenditure function in the keynesian cross model

Various types of sports clothing, ABC Sports, a store that sells various ty...

ABC Sports, a store that sells various types of sports clothing and other sports items, is planning to introduce a new design of Arizona Diamondbacks' baseball caps. A consultant h

Financial crisis in terms of adverse, Briefly explain the dynamics of the 2...

Briefly explain the dynamics of the 2007 financial crisis in terms of adverse selection and moral hazard.

Credit, How credit is created or the creation of credit

How credit is created or the creation of credit

#title.Functions of money., #qDiscuss the functions of money Illustrate you...

#qDiscuss the functions of money Illustrate your answeruestion..

Describe in detail about exchange rate systems, Describe in detail about Ex...

Describe in detail about Exchange rate systems Various countries have different exchange rate systems. The most significant characteristic of an exchange rate system is to what

MONETARY POLICY, What are the instruments of monetary policies

What are the instruments of monetary policies

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