Inflation Inflation Rate Year CPI (percent) 1931 15.8 1932 14.0 1933 13.3 1946 20.1 1947 23.2 1948 24.7 1978 67.8 1979 74.7 1980 85.4 2001 181.9 2002 183.6 2003 191.4 nstructions: Enter the year using all four numbers (yyyy). p. Using the table above, indicate the year the economy experienced: The highest annual inflation rate: The largest annual negative inflation (deflation) rate: The most stable price level (annual inflation rate closest to zero):

Inflation Inflation Rate Year CPI (percent) 1931 15.8 1932 14.0 1933 13.3 1946 20.1 1947 23.2 1948 24.7 1978 67.8 1979 74.7 1980 85.4 2001 181.9 2002 183.6 2003 191.4 nstructions: Enter the year using all four numbers (yyyy). p. Using the table above, indicate the year the economy experienced: The highest annual inflation rate: The largest annual negative inflation (deflation) rate: The most stable price level (annual inflation rate closest to zero):

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 34P: The total price of purchasing a basket of goods in the United Kingdom over four years is: year...

See similar textbooks

Similar questions

Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the CPI to convert from nominal to real would be more appropriate man using the GDP deflate:
Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the GDP deflator to convert from nominal to real would be more appropriate than using the CPI.
The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1=940, year 2=970, year 3=1000, and year 4=1070. Calculate two price indices, one using year 1 as the base year (set equal to 100) and the other using year 4 as the base year (set equal to 100). Then, calculate the inflation rate based on the first price index. If you had used the other price index, would you get a different inflation rate? If you are unsure, do the calculation and find out.
The index number representing the price level changes from 110 to 115 in one year and then from 115 to 120 the next year. Since the index number increases by five each year, is five inflation rate each year? Is the inflation rate the same each year? Explain your answer.