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Price of X in 2000: 60

Price of Y in 2000: 38

Price of X in 2001: 37

Price of Y in 2001: 49

Price of X in 2002: 46

Price of Y in 2002: 11

The base year is

2000

The representative basket of consumer goods is 92 units of X and 79 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: 74%

Nominal interest rate in 2002: 27%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 100

CPI in 2001: 85.367284674959

CPI in 2002: 59.856841117109

Inflation in 2001: -14.632715325041%

Inflation in 2002: -29.883161512027%

Real interest rate in 2001: 103.82515463918%

Real interest rate in 2002: 81.12624975495%