Consider the following Price Index in 2017 90 Price Index in 2018 100 Price Index in 2019 106 Price Index in 2020 129 Price Index in 2021 149 a. The base year is 2018. b. Calculate the inflation rate from 2018 to 2019. 6 % (Enter your response as a percentage rounded to two decimal places.) c. Calculate the inflation rate from 2019 to 2020. 21.70 % (Enter your response as a percentage rounded to two decimal places.) d. Assume the cost of a market basket in 2018 is $2,094.0. (Enter your responses rounded to one decimal place.) Calculate the cost of the same basket of goods and services in 2017. Calculate the cost of the same basket of goods and services in 2021.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Consider the following:
Price Index in 2017
90
Price Index in 2018
100
Price Index in 2019
106
Price Index in 2020
129
Price Index in 2021
149
a. The base year is 2018
b. Calculate the inflation rate from 2018 to 2019. 6 % (Enter your response as a percentage rounded to two decimal places.)
c. Calculate the inflation rate from 2019 to 2020. 21.70 % (Enter your response as a percentage rounded to two decimal places.)
d. Assume the cost of a market basket in 2018 is $2,094.0. (Enter your responses rounded to one decimal place.)
Calculate the cost of the same basket of goods and services in 2017.
Calculate the cost of the same basket of goods and services in 2021.
Transcribed Image Text:Consider the following: Price Index in 2017 90 Price Index in 2018 100 Price Index in 2019 106 Price Index in 2020 129 Price Index in 2021 149 a. The base year is 2018 b. Calculate the inflation rate from 2018 to 2019. 6 % (Enter your response as a percentage rounded to two decimal places.) c. Calculate the inflation rate from 2019 to 2020. 21.70 % (Enter your response as a percentage rounded to two decimal places.) d. Assume the cost of a market basket in 2018 is $2,094.0. (Enter your responses rounded to one decimal place.) Calculate the cost of the same basket of goods and services in 2017. Calculate the cost of the same basket of goods and services in 2021.
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