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Price of X in 2000: 69

Price of Y in 2000: 31

Price of X in 2001: 25

Price of Y in 2001: 16

Price of X in 2002: 59

Price of Y in 2002: 59

The base year is

2000

The representative basket of consumer goods is 3 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: 73%

Nominal interest rate in 2002: 88%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 100

CPI in 2001: 49.206349206349

CPI in 2002: 173.92290249433

Inflation in 2001: -50.793650793651%

Inflation in 2002: 253.45622119816%

Real interest rate in 2001: 251.58064516129%

Real interest rate in 2002: -46.810951760104%