Compute the inflation rate for each year 1989-2006 and determine which were years of inflation. In which years did deflation occur? In which years did disinflation occur? Was there hyperinflation in any year?
Please refer attached file for better clarity of tables.
Inflation = (CPI in t+1 period-CPI in t period)/(CPI in t period)
Growth rates of inflation are calculated for 1989 to 2006 with the use of above formula.
Inflation in 1989=(124-118.3)/118.3=4.82%
Similarly rates have been calculated for all other years.
Deflation means fall in CPI as comared to last year's CPI i.e. negative inflation.
No such evidence of deflation is visible
Hyperinflation means % rises in CPI which ...
Solution describes the formula for calculating inflation rate for each year. It determines the years when deflation, disinflation or hyperinflation occured.
Calculating and Assessing Inflation Rates
Please help me with the following problems.
1. Complete the table (see attached) by filling in the banks.
2. Which Decade has the most inflation?
3. How much did consumer prices change during the Great Depression from 1930 to 1940.
4. In 1925, the cost of a Model T Ford was $290. What is the equivalent cost at 2008 price levels using the CPT?
5. From 2000 to 2008, which of the following prices increased the most? (Use data from the Consumer Prices - All Urban Consumers page in the Economic Indicators posted under Handouts in Blackboard):
- owners' equivalent rent
- medical care
(see attached file for remaining problems)View Full Posting Details