Activity 2. Computing Consumer Price Index (CPI) Directions: Compute the CPI out of the following data. Submit your work in the Google class on or before the date as reflected in your study schedule. Market Basket 18 Year CPI 2011 2012 (Base Year) 2013 26 38 2014 45 2015 55 2016 2017 2018 65 75 82 92 99 2019 2020

Activity 2. Computing Consumer Price Index (CPI) Directions: Compute the CPI out of the following data. Submit your work in the Google class on or before the date as reflected in your study schedule. Market Basket 18 Year CPI 2011 2012 (Base Year) 2013 26 38 2014 45 2015 55 2016 2017 2018 65 75 82 92 99 2019 2020

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consumer Price Index (CPI), and Inflation Use the data below to answer questions 1 and 2: 2021 Base year 2022 2023 100 Loaves of bread $1.75 $2.30 $3.75 50 sticks of butter $4.80 $5.90 $7.15 1. Calculate CPI for each year. 2021: CPI 2022: CPI 2023: CPI 2. CPI in 2022 = 288.35, and in 2024 = 313.55; calculate the inflation rate between 2022 and 2024.
The market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts and 2 pants. In 2001 bread cost $1.00 per loaf, milk cost $1.50 per gallon, shirts cost $6.00 each and pants cost $10.00 per pair. In 2002 bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost $7.00 each and pants cost $12.00 per pair. What was the inflation rate, as measured by the CPI, for Aquilonia between 2001 and 2002? a. 24.4 percent b. 21.6 percent c. It is impossible to determine without knowing the base year. d. 30 percent
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Explain what is the difference between CPI and GDP deflator?
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Basket Items Unit $ per unit (2020) $ per unit (2021) $ per unit (2022) Cougar Tail 1 donut $5 $4.50 $4.25 Mint Brownie ½ sheet $29.98 $34.99 $39.99 Graham Canyon ice cream 5 quarts $14.99 $16.49 $17.99 Calculate the CPI for each year, using 2020 as the base year.
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