ASSIGNMENT: Chapter 9 Homework

  • Due Jun 17, 2022 by 11:59am
  • Points 50
  • Submitting a file upload
  • Available Jun 13, 2022 at 12am - Jun 17, 2022 at 11:59am
This assignment was locked Jun 17, 2022 at 11:59am.

Chapter 9 Homework

 

  1. The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1=£940, year 2=£970, year 3=£1000, and year 4=£1070. Calculate two price indices, one using year 1 as the base year (set equal to 100) and the other using year 4 as the base year (set equal to 100). Then, calculate the inflation rate based on the first price index. If you had used the other price index, would you get a different inflation rate? If you are unsure, do the calculation and find out.

Index #1:

 

Index #2:

 

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