B. Consumer Price Indexes (CPI) are index numbers and are used to compare the evolution of pricesover the years. The rate of change of the CPI is known as the inflation (or deflation) rate.The following table provides the CPI for two different base years (a) and (b). Complete the blanks in CPI(a) and CPI (b) by creating two spliced indexes:CPI (b)Year201020112012201320142015CPI (a)(base 2006)108.589112.059(base)Inflation rate (a)Inflation rate (b)100102.446103.889103.732103.213Compute inflation rate in the economy (rate of change of CPI) by using both the index (a) and (b). Is thereany difference in the results?_____since they CPI (a) and CPI (b) are showing.evolutionof prices. Is there any year with deflation?

Consumer Price Index refers to weighted price index of consumption goods which is a very widely used…

B. Consumer Price Indexes (CPI) are index numbers and are used to compare the evolution of prices over the years. The rate of change of the CPI is known as the inflation (or deflation) rate. The following table provides the CPI for two different base years (a) and (b). Complete the blanks in CPI (a) and CPI (b) by creating two spliced indexes: CPI (b) Year Inflation rate (a) Inflation rate (b) 2010 2011 2012 CPI (a) (base 2006) 2013 2014 2015 108.589 112.059 (base ) 100 102.446 103.889 103.732 103.213 Compute inflation rate in the economy (rate of change of CPI) by using both the index (a) and (b). Is there any difference in the results? since they CPI (a) and CPI (b) are showing. evolution

B. Consumer Price Indexes (CPI) are index numbers and are used to compare the evolution of prices over the years. The rate of change of the CPI is known as the inflation (or deflation) rate. The following table provides the CPI for two different base years (a) and (b). Complete the blanks in CPI (a) and CPI (b) by creating two spliced indexes: CPI (b) Year Inflation rate (a) Inflation rate (b) 2010 2011 2012 CPI (a) (base 2006) 2013 2014 2015 108.589 112.059 (base ) 100 102.446 103.889 103.732 103.213 Compute inflation rate in the economy (rate of change of CPI) by using both the index (a) and (b). Is there any difference in the results? since they CPI (a) and CPI (b) are showing. evolution

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer the following questions in the picture