Question
Question 2. The table below shows a sample consumer basket collected by the Bureau of Labor Statistics (BLS) from 2019 to 2022. Please finish the
Question 2. The table below shows a sample consumer basket collected by the Bureau of Labor Statistics (BLS) from 2019 to 2022. Please finish the following questions.
Items in the CPI basket | Unit | Price per unit of the goods | |||
2019 | 2020 | 2021 | 2022 | ||
Grocery 1 | 4 | $5.00 | $5.00 | $8.00 | $10.00 |
Grocery 2 | 5 | $3.00 | $4.00 | $4.50 | $5.00 |
Clothing | 3 | $18.00 | $18.00 | $20.00 | $24.00 |
Digital | 2 | $25.00 | $26.00 | $28.00 | $30.00 |
Health | 1 | $125.00 | $125.00 | $135.00 | $150.00 |
(1) How much is the nominal cost of the basket in 2019, 2020, 2021 and 2022?
(2) Use your own language to explain the major differences between CPI and GDP deflator as the measurement of change of price levels.
(3) Using 2019 as the base year, calculate consumer price index (CPI) in 2020, 2021 and 2022? Note: keep two digits after the decimal.
(4) How much is the inflation rate between 2019 and 2020? And how much is the inflation rate between 2021 and 2022? We assume 2019 is the base year in both cases. Note: keep the growth rates as percentage with two digits after the decimal, for example 5.25%.
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
Mining And The State In Brazilian Development
Authors: Gail D Triner
1st Edition
1317323580, 9781317323587
