MacBook Air Miami Dade College Macroeconomics Third Evaluati

MacBook Air Miami Dade College Macroeconomics Third Evaluation Summer 2018 1. According to the Venezuelan National Institute of Statistics, the Consumer Price Index (CPI) and Unemployment Rate are as follow: Table 1 Cyclical Pnyment Year CPI 2009 100.0 2010 130.9 2011 5.0% 6.2% 5.1% 5.8% 58% 5.7% 5.8% 5.4% 163.7 2012 163.7 185.6 2013 2014 218.9 2015 210.1 2016 239 5 Calculate the rate of inflation and its type for each year during the period 2010-2016.

Solution

Inflation rate = ((New year CPI-Last year CPI)/Last year CPI)*100

Types:

1. Galloping: If inflation is greater than 10 percent

2. Creeping: If inflation is less than 10 percent

3. Deflation: In inflation becomes less than 0 percent

Year

CPI

Inflation rate

Types

2009

100

2010

130.9

30.90%

Galloping

2011

163.7

25.06%

Galloping

2012

163.7

0.00%

Creeping

2013

185.6

13.38%

Galloping

2014

218.9

17.94%

Galloping

2015

210.9

-3.65%

Deflation

2016

239.5

13.56%

Galloping

Year	CPI	Inflation rate	Types
2009	100
2010	130.9	30.90%	Galloping
2011	163.7	25.06%	Galloping
2012	163.7	0.00%	Creeping
2013	185.6	13.38%	Galloping
2014	218.9	17.94%	Galloping
2015	210.9	-3.65%	Deflation
2016	239.5	13.56%	Galloping