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Inflation and CPI

Last updated over 2 years ago

4 questions

1

Question 1

1.

First, quickly calculate the cost of the market basket for each year.

Then, using Year 1 as the Base Year:

What is the CPI for Year 1?

1

1

1

Question 2

2.

Using the above, what is the Consumer Price Index (CPI) of Year 1?

120

100

80

Question 3

3.

Using the above, what is the Consumer Price Index (CPI) of Year 2?

85

100

125

Question 4

4.

Using the above, what is the Consumer Price Index (CPI) of Year 3?

150

100

125