Note: The answer should be typed 5. Please calculate the CPI and the inflation rate using the information in Figure 1.2 (below).Year Unitsof Food20072008 650200920102011PriceofFood1421192620Assume the base year is 2008Units Priceof Fuel of Fuel780119141813Figure 1.2Price inthe baseyearPrice inthecurrentyearCPI InflationRate(%)11

CPI is the index of price corresponding to the base year. In the base year it has the value 100. And…

5. Please calculate the CPI and the inflation rate using the information in Figure 1.2 (below). Year Units of Food 2007 2008 2009 2010 2011 650 Price of Food 14 21 19 26 20 Assume the base year is 2008 Units Price of Fuel of Fuel 780 11 9 14 18 13 Price in the base year Price in the current year CPI Inflation Rate (%) 11

5. Please calculate the CPI and the inflation rate using the information in Figure 1.2 (below). Year Units of Food 2007 2008 2009 2010 2011 650 Price of Food 14 21 19 26 20 Assume the base year is 2008 Units Price of Fuel of Fuel 780 11 9 14 18 13 Price in the base year Price in the current year CPI Inflation Rate (%) 11

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 7E

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