dibryleuvede 147cloudiront nd d City University o Help Jump

dibryleuvede 147.cloudiront nd d. City University o Help Jump to. Question 4 df 20 Sapling Learning The table below shows the cost of a fixed basket of goods that a typical urban consumer would buy in the economy of Kindleberger, where the base period for the consumer price index (CPI) is the year 2060. The year for which you are deter ing the is considered the current year. Please spety your ans es t two decimal places Cost of a basket of goods Year 2000 2011 2012 $8150.00 $8500 00 $8725.00 What is the CP for 20002 Number 100 What is the CPI for 20117 Number What is the CPI tor 20122 Number 0Prevous Give Up & Vie* Soldon Check Answer Oteel

Solution

Consumer price index can be computed as the ratio of cost of baskets in given year to the cost of basket in base year

CPI for 2000 = Cost of basket in 2000 /  Cost of basket in 2000 (base year)

= 8150/8150 = 1*100 = 100

CPI for 2011 = Cost of basket in 2011 /  Cost of basket in 2000 (base year)

= 8500/8150 = 1.0429*100 = 104.29

CPI for 2012 = Cost of basket in 2012 /  Cost of basket in 2000 (base year)

= 8725/8150 = 1.0706*100 = 107.06