Question
2. Consider the following data on US home price index, the Case-Schiller Index (CSI) in nominal terms, and the consumer price index (CPI). a) Calculate
2. Consider the following data on US home price index, the Case-Schiller Index (CSI) in nominal terms, and the consumer price index (CPI). a) Calculate the yearly percentage changes in home prices and the yearly inflation rates. b) Calculate the real values of the CSI in 2010 dollars. c) Calculate the yearly percentage changes in CSI in real terms. d) Calculate the yearly CSI changes in real terms by using the Fisher equation: Real rate = (1+nominal rate)/(1+inflation rate) 1 e) Are your figures in (c) and (d) the same or different? year CSI CPI 2008 150.54 210.23 2009 145.89 215.95 2010 142.39 219.18 2011 136.60 225.67 2012 146.08 229.60 2013 165.63 233.05 2014 172.83 234.81 2015 182.43 236.52 2016 192.33 241.43 2017 204.41 246.52 2018 212.66 251.23 2019 218.71 256.97
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started