Question
3. Suppose Bureau of Labor Statistics (BLS) collect a basket as the table below. Please finish the following questions. To get full credit, you need
3. Suppose Bureau of Labor Statistics (BLS) collect a basket as the table below. Please finish the following questions. To get full credit, you need to show step-by-step solutions.
Items in the CPI basket
unit
Price per unit of the goods
2018
2019
2020
2021
Coffee
5
$2.00
$2.00
$2.00
$2.50
Earphone
1
$10.00
$10.00
$12.00
$12.00
Pizza
6
$5.00
$6.00
$8.00
$8.00
T-shirt
2
$15.00
$15.00
$15.00
$18.00
(1) How much is the nominal cost of the basket in 2018, 2019, 2020, 2021?
(2) Using 2018 as the base year, what are consumer price index (CPI) in 2019, 2020 and 2021?
(3) How much is the inflation rate between 2018 and 2019? And how much is the inflation rate between 2020 and 2021? We assume 2018 is the base year.
(4) Use your own language to explain the major differences between CPI and GDP deflator as the measurement of price levels.
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Classics In Game Theory
Authors: Harold William Kuhn
1st Edition
1400829151, 9781400829156
