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Calculate the Consumer Price Index (to one decimal place) and the Inflation Rate (to two decimal places) for the following years.
The value of the market basket in the base year was $1110.
Year Value of Market Basket Consumer Price Index (CPI) Inflation Rate
2000 $ 1320.00
2001 $ 1385.00
2002 $ 1460.00
2003 $ 1520.00
2004 $ 1560.00
2005 $ 1540.00
b) In which year(s) did deflation occur?
c) In which year(s) did disinflation occur?
d) In which year(s) did hyperinflation occur?
e) Mr Mark Chans annual salary in the year 2001 was S$30,000 and it increased to S$30,900 in the year 2002. What has happened to Mr Chans standard of living in the year 2002? Has it increased, decreased or remained the same?
f) Which year is the base year?
errr..how to do?
and thanks!
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Wah.... so long ago since I took econs....
b) 2005
CPI
2000 1.245
2001 1.248
2002 1.315
2003 1.369
2004 1.405
2005 1.387
c) Disinflation is a decrease in the rate of inflation. Being how much prices are increasing per unit of time, it can be expressed using the word disinflation: The slowing of the rate of inflation per unit of time.
My guess is
2003
2004
d) dunno. My guess is year 2000 because I guess the base year is 1999
e) with regards to base year,
2001 salary in base year is 30k/1385*1110 = 24043.32
2002 salary in base year is 30900/1460*1110 = 23492.47
So decrease
f) 1999?
Not
sure of any of the answers... SorryEdited by eagle 09 Dec `07, 7:59PM
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Originally posted by unclebutcher:uh oh...
inflation is 2nd year, under macroeconomics
so you haven't learn yet
I find macroeconomics essays easier than microeconomics, because you can talk more rubbish. Micro is more of having the facts and graphs well memorized, something which I'm bad at... I like analysis more than memorising
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Originally posted by eagle:inflation is 2nd year, under macroeconomics
so you haven't learn yet
I find macroeconomics essays easier than microeconomics, because you can talk more rubbish. Micro is more of having the facts and graphs well memorized, something which I'm bad at... I like analysis more than memorisingyeah me too...i dislike memorising simi price discrimination 1st degree 2nd degree...... so j2 shud be a good yr for my econs
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