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Price of X in 2000: 80

Price of Y in 2000: 25

Price of X in 2001: 70

Price of Y in 2001: 42

Price of X in 2002: 40

Price of Y in 2002: 9

The base year is

2000

The representative basket of consumer goods is 96 units of X and 36 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: 39%

Nominal interest rate in 2002: 57%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 100

CPI in 2001: 95.9440559441

CPI in 2002: 48.5314685315

Inflation in 2001: -4.05594405594%

Inflation in 2002: -49.416909621%

Real interest rate in 2001: 44.8760932945%

Real interest rate in 2002: 210.380403458%