CPI and Inflation Practice Problems #1 Fill in blanks in table below Market Basket Items Cheese Blue Jeans Gasoline Total Cost of Basket # of Units Year 2 Index = 2 lbs Year 3 Index = 2 pairs 10 gallons Year 1 Index = (base year) Using year 1 as our base year, using the formula above to calculate the index for each year: Year 1 (2000) $ per unit Total Cost $1.75 $3.50 $12.00 $ $1.25 $ Year 2 (2003) $ per unit Total Cost $1.50 $ $15.50 $ $1.60 $ Year 3 (2006) $ per unit Total Cost $1.50 $ $20.00 $2.70 $ $ 113
CPI and Inflation Practice Problems #1 Fill in blanks in table below Market Basket Items Cheese Blue Jeans Gasoline Total Cost of Basket # of Units Year 2 Index = 2 lbs Year 3 Index = 2 pairs 10 gallons Year 1 Index = (base year) Using year 1 as our base year, using the formula above to calculate the index for each year: Year 1 (2000) $ per unit Total Cost $1.75 $3.50 $12.00 $ $1.25 $ Year 2 (2003) $ per unit Total Cost $1.50 $ $15.50 $ $1.60 $ Year 3 (2006) $ per unit Total Cost $1.50 $ $20.00 $2.70 $ $ 113
Chapter7: Unemployment And Inflation
Section: Chapter Questions
Problem 3.7P
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