13Use the table below to calculate core and headline inflation in each time frame relative to the base year, assuming that each categoryis weighted equally in the calculation of headline inflation.Instructions: Round your answers to one decimal place. If you are entering any negative numbers be sure to include a negative sign (-)in front of those numbers.HeadlineCore inflationinflationOther goods(relative tothe base year(relative tothe base)Food andYearenergyand services201411610220181051072014-2018

*Answer: Core inflation = (102/100) -1 = 2% Headline inflation = [( 116/2+ 102/2) - 100] = 9%…

Answered: Headline Core inflation inflation Other…

Headline Core inflation inflation Other goods and services (relative to the base year (relative to the base) Food and Year energy 2014 116 102 2018 105 107 2014-2018

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 6PA

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Question

13
Use the table below to calculate core and headline inflation in each time frame relative to the base year, assuming that each category
is weighted equally in the calculation of headline inflation.
Instructions: Round your answers to one decimal place. If you are entering any negative numbers be sure to include a negative sign (-)
in front of those numbers.
Headline
Core inflation
inflation
Other goods
(relative to
the base year
(relative to
the base)
Food and
Year
energy
and services
2014
116
102
2018
105
107
2014-2018

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