ECON 2105 Study Guide - Final Guide: Fisher Equation
59 views2 pages
Get access
Grade+
$40 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Related Documents
Related Questions
karaoke machine | karaoke machine | CDs | CDs | |
---|---|---|---|---|
year | quantity | Price | Quantity | Price |
2013 | 20 | $50 | 100 | $15 |
2014 | 30 | $90 | 150 | $20 |
a. Calculate CPI and compute the inflation rate of CPI. Use 2013 as the base year, and fix the basket at 1 karaoke machines and 3 CDs.
b. Calculate GDP deflator and compute the inflation rate using GDP deflator. Also use 2013 as the base year.
c. Is the inflation rate in 2014 the same using the two methods? Explain why or why not.