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Price of X in 2000: 59

Price of Y in 2000: 43

Price of X in 2001: 77

Price of Y in 2001: 8

Price of X in 2002: 21

Price of Y in 2002: 100

The base year is

2001

The representative basket of consumer goods is 7 units of X and 67 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: 26%

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: 306.41860465116

CPI in 2001: 100

CPI in 2002: 636.93023255814

Inflation in 2001: -67.364905889496%

Inflation in 2002: 536.93023255814%

Real interest rate in 2001: 286.08744186047%

Real interest rate in 2002: -70.169417263035%