The consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price index of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good Z in 2018, 2019, and 2020. Calculate the percentage change in index between 2018 and 2019 and again between 2019 and 2020. What is rate of inflation/deflation between 2019 and 2020?
The consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price index of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good Z in 2018, 2019, and 2020. Calculate the percentage change in index between 2018 and 2019 and again between 2019 and 2020. What is rate of inflation/deflation between 2019 and 2020?
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 4.9P
Related questions
Question
Q1: The
GOOD
QUANTITY CONSUMED
2018
PRICES
2019
PRICES
2020
PRICES
X
100
Rs. 10.00
Rs.10.50
Rs. 10.75
Y
150
Rs. 10.50
Rs. 20.00
Rs. 20.00
Z
25
Rs. 30.00
Rs. 30.25
Rs. 30.00
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