The Consumer Price Index (CPI) is a measure of the change in the cost of goods over time. If 1982 is used as the base year of comparison in some country (CPI = 100 in 1982), then the CPI of 212.8 in 2006 would indicate that an item that cost $1.00 in 1982 would cost $2.13 in 2006 in this country. It is known that the CPI in this country has been increasing at an approximately linear rate for the past 30 years. a. Use this information to determine a linear function for this data, letting x be the years since 1982. b. Based on your function, what was the CPI in 2000? Compare this estimate to the actual CPI of 187.4 for this country. a. y= (): (Round to the nearest tenth as needed.) X+ b. The CPI in 2000 was . (Round to the nearest tenth as needed.) The difference between the estimated CPI and the actual CPI makes Ay = % of the actual CPI. (Round to the nearest tenth as needed.) c. The CPI is increasing at the rate of | (Round to the nearest tenth as needed.)

The Consumer Price Index (CPI) is a measure of the change in the cost of goods over time. If 1982 is used as the base year of comparison in some country (CPI = 100 in 1982), then the CPI of 212.8 in 2006 would indicate that an item that cost $1.00 in 1982 would cost $2.13 in 2006 in this country. It is known that the CPI in this country has been increasing at an approximately linear rate for the past 30 years. a. Use this information to determine a linear function for this data, letting x be the years since 1982. b. Based on your function, what was the CPI in 2000? Compare this estimate to the actual CPI of 187.4 for this country. a. y= (): (Round to the nearest tenth as needed.) X+ b. The CPI in 2000 was . (Round to the nearest tenth as needed.) The difference between the estimated CPI and the actual CPI makes Ay = % of the actual CPI. (Round to the nearest tenth as needed.) c. The CPI is increasing at the rate of | (Round to the nearest tenth as needed.)

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter17: Inflation

Section: Chapter Questions

Problem 5SQ

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