e consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price index of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good Z in 2018, 2019, and 2020. Calculate the percentage change in index between 2018 and 2019 and again between 2019 and 2020. What is rate of inflation/deflation between 2019 and 2020? GOOD QUANTITY CONSUMED 2018 PRICES 2019 PRICES 2020 PRICES X 100 Rs. 10.00 Rs.10.50 Rs. 10.75 Y 150 Rs. 10.50 Rs. 20.00 Rs. 20.00 Z 25 Rs. 30.00 Rs. 30.25
e consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price index of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good Z in 2018, 2019, and 2020. Calculate the percentage change in index between 2018 and 2019 and again between 2019 and 2020. What is rate of inflation/deflation between 2019 and 2020? GOOD QUANTITY CONSUMED 2018 PRICES 2019 PRICES 2020 PRICES X 100 Rs. 10.00 Rs.10.50 Rs. 10.75 Y 150 Rs. 10.50 Rs. 20.00 Rs. 20.00 Z 25 Rs. 30.00 Rs. 30.25
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 4.9P
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consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price index of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good Z in 2018, 2019, and 2020. Calculate the percentage change in index between 2018 and 2019 and again between 2019 and 2020. What is rate of inflation/deflation between 2019 and 2020?
GOOD |
QUANTITY CONSUMED |
2018 PRICES |
2019 PRICES |
2020 PRICES |
X |
100 |
Rs. 10.00 |
Rs.10.50 |
Rs. 10.75 |
Y |
150 |
Rs. 10.50 |
Rs. 20.00 |
Rs. 20.00 |
Z |
25 |
Rs. 30.00 |
Rs. 30.25 |
Rs. 30.00 |
- In each case of following cases, does the increase in prices affect CPI,
GDP deflator, or both in Pakistan? Analyze and Justify your answer. (Maximum 150 words)
- The price of imported Belgian chocolate has increased.
- The price of imported equipment used in industrial level ice-cream production has increased.
- The price of Millat Tractors has increased.
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