**Educational Content: Understanding CPI and Inflation Rates****Values of the Consumer Price Index (CPI): 2000-2010**Here are values of the Consumer Price Index (CPI), multiplied by 100, for each year from 2000 to 2010. Your task is to calculate the rate of inflation for each year, starting from 2001, compared to the previous year.**Instructions:** Enter your responses rounded to two decimal places.| Year | CPI | Inflation Rate (%) ||------|------|---------------------|| 2000 | 127.7 | — || 2001 | 133.2 | 4.11 || 2002 | 137.3 | 2.94 || 2003 | 141.5 | 2.93 || 2004 | 145.2 | 2.50 || 2005 | 149.4 | 2.77 || 2006 | 153.9 | 2.89 || 2007 | 157.5 | 2.25 || 2008 | 160.0 | 1.53 || 2009 | 163.6 | 2.16 || 2010 | 169.2 | 3.30 |**Explanation:**- **CPI (Consumer Price Index):** A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. - **Inflation Rate:** The percentage change in the CPI from one year to the next, indicating how much more expensive a set of goods and services has become over a certain period, usually a year.Calculating the inflation rate involves the following formula:\[ \text{Inflation Rate} = \left( \frac{\text{CPI in Current Year} - \text{CPI in Previous Year}}{\text{CPI in Previous Year}} \right) \times 100 \]This provides a useful indicator of purchasing power and economic stability over time. Understanding these values helps in analyzing economic trends and making informed financial decisions.

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Description: **Educational Content: Understanding CPI and Inflation Rates****Values of the Consumer Price Index (CPI): 2000-2010**Here are values of the Consumer Price Index (CPI), multiplied by 100, for each year from 2000 to 2010. Your task is to calculate the

The inflation rate is calculated by: =present year value-past year valuepast year value×100 Which measures the change(in %) in the CPI.we can calculated it as follows: Hence, For 2001:133.2-127.7127.7×100=4.306For 2002:137.3-133.2133.2×100=3.078For 2003:141.5-137.3137.3×100=3.058For 2004:145.2-141.5141.5×100=2.614For 2005:149.4-145.2145.2×100=2.892For 2006:153.9-149.4149.4×100=3.012For 2007:157.5-153.9153.9×100=2.339For 2008:160-157.5157.5×100=1.587For 2009:163.6-160160×100=2.25For 2010:169.2-163.6163.6×100=3.422

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Here are values of the CPI (multiplied by 100) for each year from 2000 to 2010. For each year beginning with 2001, calculate the rate of inflation from the previous year. Instructions: Enter your responses rounded to two decimal places. Year CPI Inflation Rate (%) 2000 127.7 2001 133.2 4.11 2002 137.3 2.94 2003 141.5 2.93 2004 145.2 2.5 2005 149.4 2.77 2006 153.9 2.89 2007 157.5 2.25 2008 160 1.53 2009 163.6 2.16 2010 169.2 3.3

Here are values of the CPI (multiplied by 100) for each year from 2000 to 2010. For each year beginning with 2001, calculate the rate of inflation from the previous year. Instructions: Enter your responses rounded to two decimal places. Year CPI Inflation Rate (%) 2000 127.7 2001 133.2 4.11 2002 137.3 2.94 2003 141.5 2.93 2004 145.2 2.5 2005 149.4 2.77 2006 153.9 2.89 2007 157.5 2.25 2008 160 1.53 2009 163.6 2.16 2010 169.2 3.3

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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