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Price of X in 2000: 8

Price of Y in 2000: 75

Price of X in 2001: 47

Price of Y in 2001: 7

Price of X in 2002: 3

Price of Y in 2002: 27

The base year is

2002

The representative basket of consumer goods is 80 units of X and 90 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: 95%

Nominal interest rate in 2002: 60%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 276.779026217

CPI in 2001: 164.419475655

CPI in 2002: 100

Inflation in 2001: -40.5953991881%

Inflation in 2002: -39.1799544419%

Real interest rate in 2001: 228.257403189%

Real interest rate in 2002: 163.071161049%