1. In 2012 the price index was calculated at 157.6 with 2009 as the base year....

1. In 2012 the price index was calculated at 157.6 with 2009 as the base year. In 2013 the price index increased to 168.3. What was the inflation from 2008-2009?

A. 6.8%

B. 6.4%

C. 10.7%

2. In the fictional country of Alpha-land the economics statistics department has been busy calculating the price index for a basket of goods from 2013 to 2017. January 2013 is the standardized price index, at 100, for a basket of consumer goods in the country. The price index increased in 2014 to 105.7, in 2015 to 110.3, in 2016 to 114.1, and in 2017 it increased to 121.2. You have been called to the country to help establish the rate of inflation for those years. What is the inflation rate in Alpha-land for 2014 to 2015?

A. 5.7%

B. 4.4%

C. 14.1%

3. In the fictional country of Beta-land the economics statistics department has been busy calculating the price index for a basket of goods from 2009 to 2013. January 2009 is the standardized price index, at 100, for a basket of consumer goods in the country. The price index increased in 2010 to 110.3, in 2011 to 115.7, in 2012 to 120.5, and in 2013 it increased to 125.7. You have been called to the country to help establish the rate of inflation for those years. What is the inflation rate in Beta-land for 2012 to 2013?

A. 4.1%

B. 4.9%

C. 4.3%

Expert Solution

ANSWER 1) OPTION A

ANSWER 2) OPTION B

ANSWER 3) OPTION C

Rahul Sunny answered 3 years ago

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