Questions:1. Compute the total costs for all the years (2017 to 2020).2. Compute the price index for each year using 2019 as the base year.3. Compute the inflation rate for each year. NOTE: Explain and support the answer with calculations. Table below shows the quantity and prices of different CPI components(items) from 2017 to 2020.(2018)(2017)Price(2019)Price(2020)PriceItemsQuantityPriceHousing15PI0.00P12.00P15.00PI7.00Transportation50P150.00P160.00P165.00PI71.00Food andBeverages20P250.00P255.00P275.00P277.00Education100P300.00P315.00P350.00P355.00Others150P400.00P420.00P450.00P460.00

Total cost is the summation of all the money needed to produce a particular good. The price index is…

Questions: 1. Compute the total costs for all the years (2017 to 2020). 2. Compute the price index for each year using 2019 as the base year. 3. Compute the inflation rate for each year. NOTE: Explain and support the answer with calculations.

Questions: 1. Compute the total costs for all the years (2017 to 2020). 2. Compute the price index for each year using 2019 as the base year. 3. Compute the inflation rate for each year. NOTE: Explain and support the answer with calculations.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Macroeconomic Measurements, Part I: Prices And Unemployment

Section: Chapter Questions

Problem 9WNG

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Question

Questions:

1. Compute the total costs for all the years (2017 to 2020).

2. Compute the price index for each year using 2019 as the base year.

3. Compute the inflation rate for each year.

NOTE: Explain and support the answer with calculations.

Table below shows the quantity and prices of different CPI components
(items) from 2017 to 2020.
(2018)
(2017)
Price
(2019)
Price
(2020)
Price
Items
Quantity
Price
Housing
15
PI0.00
P12.00
P15.00
PI7.00
Transporta
tion
50
P150.00
P160.00
P165.00
PI71.00
Food and
Beverages
20
P250.00
P255.00
P275.00
P277.00
Education
100
P300.00
P315.00
P350.00
P355.00
Others
150
P400.00
P420.00
P450.00
P460.00

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