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Price of X in 2000: 51

Price of Y in 2000: 78

Price of X in 2001: 35

Price of Y in 2001: 12

Price of X in 2002: 1

Price of Y in 2002: 62

The base year is

2002

The representative basket of consumer goods is 82 units of X and 24 units of Y.

Find the CPI for all 3 years.



Find the inflation rate in 2001 and 2002.

Extra problem (if you have completed Chapter 9):

Nominal interest rate in 2001: 78%

Nominal interest rate in 2002: 90%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 385.6050955414

CPI in 2001: 201.14649681529

CPI in 2002: 100

Inflation in 2001: -47.83614139412%

Inflation in 2002: -50.284990500317%

Real interest rate in 2001: 241.23242558581%

Real interest rate in 2002: 282.17834394904%