The BBS reported the following CPI data: June 2016- 201.9 June 2017- 207.2 June 2018- 217.4 a) Calculate the inflation rates for the years ended June 2017 and June 2018. How did the inflation rate change in 2018? b) If the cost of a market basket in 2016 is 2,000, t what is the cost of the same basket of goods and services in 2017? In 2018? c) Why might these CPI numbers be biased? Explain all the reasons with appropriate examples in each case
The BBS reported the following CPI data: June 2016- 201.9 June 2017- 207.2 June 2018- 217.4 a) Calculate the inflation rates for the years ended June 2017 and June 2018. How did the inflation rate change in 2018? b) If the cost of a market basket in 2016 is 2,000, t what is the cost of the same basket of goods and services in 2017? In 2018? c) Why might these CPI numbers be biased? Explain all the reasons with appropriate examples in each case
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Taking The Nation's Economic Pulse
Section: Chapter Questions
Problem 8CQ
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The BBS reported the following CPI data:
June 2016- 201.9 June 2017- 207.2 June 2018- 217.4
a) Calculate the inflation rates for the years ended June 2017 and June 2018. How did the
inflation rate change in 2018?
b) If the cost of a market basket in 2016 is 2,000, t what is the cost of the same basket of
goods and services in 2017? In 2018?
c) Why might these CPI numbers be biased? Explain all the reasons with appropriate
examples in each case
d) How do alternative
deflator, PPI are some of the prominent alternative price indexed).
e) Give example of the pros and cons of each index including CPI?
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