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Price of X in 2000: 19

Price of Y in 2000: 68

Price of X in 2001: 15

Price of Y in 2001: 5

Price of X in 2002: 67

Price of Y in 2002: 34

The base year is

2002

The representative basket of consumer goods is 71 units of X and 7 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: 67%

Nominal interest rate in 2002: 50%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 36.5365365365

CPI in 2001: 22.022022022

CPI in 2002: 100

Inflation in 2001: -39.7260273973%

Inflation in 2002: 354.090909091%

Real interest rate in 2001: 177.068181818%

Real interest rate in 2002: -66.966966967%