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Price of X in 2000: 51

Price of Y in 2000: 3

Price of X in 2001: 61

Price of Y in 2001: 31

Price of X in 2002: 15

Price of Y in 2002: 97

The base year is

2000

The representative basket of consumer goods is 13 units of X and 39 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: 96%

Nominal interest rate in 2002: 39%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 100

CPI in 2001: 256.66666666667

CPI in 2002: 510

Inflation in 2001: 156.66666666667%

Inflation in 2002: 98.701298701299%

Real interest rate in 2001: -23.636363636364%

Real interest rate in 2002: -30.045751633987%