Here are values of the CPI (multiplied by 100) for each year from 2000 to 2010. For each year beginning with 2001, calculate the rate of inflation from the previous year.Instructions: Enter your responses rounded to two decimal placesInflation Rate (%)YearCPI2000133.7139.220012002143.32003147.5151.220042005155.42006159.92007163.520081662009169.62010175.2

Question
Asked Nov 10, 2019
64 views
Here are values of the CPI (multiplied by 100) for each year from 2000 to 2010. For each year beginning with 2001, calculate the rate of inflation from the previous year.
Instructions: Enter your responses rounded to two decimal places
Inflation Rate (%)
Year
CPI
2000
133.7
139.2
2001
2002
143.3
2003
147.5
151.2
2004
2005
155.4
2006
159.9
2007
163.5
2008
166
2009
169.6
2010
175.2
help_outline

Image Transcriptionclose

Here are values of the CPI (multiplied by 100) for each year from 2000 to 2010. For each year beginning with 2001, calculate the rate of inflation from the previous year. Instructions: Enter your responses rounded to two decimal places Inflation Rate (%) Year CPI 2000 133.7 139.2 2001 2002 143.3 2003 147.5 151.2 2004 2005 155.4 2006 159.9 2007 163.5 2008 166 2009 169.6 2010 175.2

fullscreen
check_circle

Expert Answer

Step 1

The rate of inflation can be calculated by using the following formula:

-CPI
Previous x100 ....... (1)
СРІ.
Present
Inflation rate
СР.
Previous
help_outline

Image Transcriptionclose

-CPI Previous x100 ....... (1) СРІ. Present Inflation rate СР. Previous

fullscreen
Step 2

Inflation rate from the year 2001 to 2010 can be calculate by substitute values in the equation (1) as follows:

139.2-133.7
Inflation rate2001
-x 100
133.7
5.5
-x 100
133.7
550
133.7
=4.11
143.3-139.
Inflation rate.
2002
x100
139.2
4.1
-x100
139.2
410
139.2
=2.94
help_outline

Image Transcriptionclose

139.2-133.7 Inflation rate2001 -x 100 133.7 5.5 -x 100 133.7 550 133.7 =4.11 143.3-139. Inflation rate. 2002 x100 139.2 4.1 -x100 139.2 410 139.2 =2.94

fullscreen
Step 3
147.5-143.3
Inflation rate
2003
x100
143.3
4.2
-x100
143.3
420
143.3
= 2.93
151.2-147.5
-x100
Inflation rate
2004
147.5
3.7
-x100
147.5
370
147.5
2.5
help_outline

Image Transcriptionclose

147.5-143.3 Inflation rate 2003 x100 143.3 4.2 -x100 143.3 420 143.3 = 2.93 151.2-147.5 -x100 Inflation rate 2004 147.5 3.7 -x100 147.5 370 147.5 2.5

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Economics

Inflation

Related Economics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: Economists can do a reasonably good job of calculating GDP, GDP per capita, NDP, etc. Do you agree? ...

A: GDP refers to the Gross Domestic Product. It is the value of all the final goods and services produc...

question_answer

Q: Consider an economy in which the demand for money is of the formMt =1/(bar over v)PtYfor t = 0, 1, 2...

A: Given: Mt= (1/v) PtYY= 150, v= 1.5, Money supply = 100 for t=0,1

question_answer

Q: Which of the following would both make the interest rate on a bond higher than otherwise?   a. ...

A: Bonds are defined as long term debt which is exclusively been provided by the company to generate fu...

question_answer

Q: What is the price elasticity of demand at any point on a perfectly inelastic demand curve?

A: The price elasticity of demand measures the percentage change in quantity demanded due to percentage...

question_answer

Q: The price of the coffe rose sharply last month, while the quantity sold remained the same. Each of t...

A: Click to see the answer

question_answer

Q: Figure 4-10 Price Supply A Supply B Supply C Оиantity 24.Refer to Figure 4-10. Which of the followin...

A: The supply curve is an upward sloping curve showing relation between the quantity supplied by a firm...

question_answer

Q: Why are prices of agricultural commodities volatile? Discuss, drawing on economic theory and using e...

A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session a...

question_answer

Q: Should the government subsidize farmers? Under what circumstances should the government permit price...

A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session a...

question_answer

Q: A basket of goods and services purchased by an average urban consumer had a cost of $340 in the year...

A: The cost of price index (CPI) is a measure used to estimate the price changes in a basket of goods a...