Items 2000 2020 Price ($) 0,71 0,74 1,34 2,71 Quantity 18 5 Price ($) 2 Quantity 27 Margarine Shortening Milk Potato Chips a. Compute a simple aggregate price index. Use 2000 as base period b. Compute Laspeyres' price index for 2020 using 2000 as base period. c. Compute Paasche's index for 2020 using 2000 as base period. d. Determine the Fisher's Ideal index using the values of Laspeyres and Paasche indexes computed in the two previous problems 70 27 1,88 2.89 3,99 65 33

Items 2000 2020 Price ($) 0,71 0,74 1,34 2,71 Quantity 18 5 Price ($) 2 Quantity 27 Margarine Shortening Milk Potato Chips a. Compute a simple aggregate price index. Use 2000 as base period b. Compute Laspeyres' price index for 2020 using 2000 as base period. c. Compute Paasche's index for 2020 using 2000 as base period. d. Determine the Fisher's Ideal index using the values of Laspeyres and Paasche indexes computed in the two previous problems 70 27 1,88 2.89 3,99 65 33

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 6SCQ: The Consumer Price Index is subject to the substitution bias and me quality/new goods bias. Are the...

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