a. Go to www.bls.gov. Click on link “Subjects”; on the left, under “Inflation &
Prices,” click on the link “Consumer Price Index,” then “CPI Tables,” and then “Archived CPI Detailed Report Tables.” Download the zip file for 2009 and open file cpidogav.pdf. What is the value of the percent change in the CPI from 2008 to 2009?

b. Now go to www.treasury.gov and click on “Resource Center.” From there, click on “Data and Charts Center.” Under the heading “Interest Rates,” select “Daily Treasury Bill Rates” and select “2009” under “Select Time Period.” Examine the data in “4 Weeks Bank Discount.” What is the maximum? The minimum?
Then do the same for 2007. How do the data for 2009 and 2007 compare? How would you relate this to your answer in part a? From the data on Treasury bill interest rates, what would you infer about the level of the inflation rate in 2007 compared to 2009? (You can check your answer by going back to the www.bls.gov website to find the percent change in the CPI from 2006 to 2007.) .. How would you characterize the change in the U.S. economy from 2007 to 2009? What were the implications for the effectiveness of monetary policy?