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Price of X in 2000: 43

Price of Y in 2000: 64

Price of X in 2001: 85

Price of Y in 2001: 62

Price of X in 2002: 41

Price of Y in 2002: 6

The base year is

2001

The representative basket of consumer goods is 77 units of X and 86 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: 60%

Nominal interest rate in 2002: 11%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 74.219078891976

CPI in 2001: 100

CPI in 2002: 30.925317841206

Inflation in 2001: 34.736245036869%

Inflation in 2002: -69.074682158794%

Real interest rate in 2001: 18.750526227162%

Real interest rate in 2002: 258.92921317724%