Question 2.a) Calculate the CPI of 2009.b) Calculate the inflation rate of 2009.c) If your salary in 2008 and 2009 was same, comment on your standard of living in these two years.d) If the bank interest rate was 6% in 2009, what was the real interest rate in 2009? Imagine that a hypothetical economy produces three items food, clothes and Aluminum and a typical consumer buys food andclothing only. The table below shows the hypothetical results.Price/unit (2009)Price/unit (2008)Tk. 20Qty (2009)Qty (2008)ItemFoodTk. 10200400ClothesTk. 20010Tk. 40020AluminumBase year: 2008Tk. 5004Tk. 10008

CPI is an index that measures inflation by analysing changes in prices of goods & services that…

Question 2. a) Calculate the CPI of 2009. b) Calculate the inflation rate of 2009. c) If your salary in 2008 and 2009 was same, comment on your standard of living in these two years. d) If the bank interest rate was 6% in 2009, what was the real interest rate in 2009?

Question 2. a) Calculate the CPI of 2009. b) Calculate the inflation rate of 2009. c) If your salary in 2008 and 2009 was same, comment on your standard of living in these two years. d) If the bank interest rate was 6% in 2009, what was the real interest rate in 2009?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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