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Price of X in 2000: 38

Price of Y in 2000: 8

Price of X in 2001: 65

Price of Y in 2001: 33

Price of X in 2002: 19

Price of Y in 2002: 71

The base year is

2000

The representative basket of consumer goods is 77 units of X and 14 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: 61%

Nominal interest rate in 2002: 74%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 100

CPI in 2001: 179.95391705069

CPI in 2002: 80.875576036866

Inflation in 2001: 79.953917050691%

Inflation in 2002: -55.0576184379%

Real interest rate in 2001: -10.532650448143%

Real interest rate in 2002: 287.16239316239%