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Given the price of different goods for the base and current years. Type of goods CPI (based CPI (current Weighted Weighted CPI Weighted CPI year)
Given the price of different goods for the base and current years. Type of goods CPI (based CPI (current Weighted Weighted CPI Weighted CPI year) in RM year ) in RM (base year) (current year) A 5 8 1 B 20 15 3 C 10 8 4 D 3 6 2 Answer all questions below: a) What are the main reasons in calculating the CPL. b) Calculate the weighted CPI for each of the goods between different years. c) Comment on the changes in the general price level for the new year. d) Calculate the percentage of change In the value of money due to the changes in the general price above. e) What is the effect of the above changes on the standard of living in the current year? f) What is the importance of weighted CPI in constructing the price index? (20 Marks)
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