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Andrew [12]
3 years ago
8

Henry is an economist and wants to understand the relationship between inflation and consumer spending habits. For his research,

he needs the Consumer Price Index for 2014 and the inflation rate. Based on the prices of goods given, what will he find to be the CPI and inflation rate for 2014? Assume that a consumer’s basket for three consecutive years consists of the following:
Year

Price of an Apple

Number of Apples Consumed

Price of an Orange

Number of Oranges Consumed

2012

2

3

3

2

2013

3

2

4

1

2014

5

1

5

2

Consider 2012 to be the base year.
Business
1 answer:
alexandr402 [8]3 years ago
5 0

Answer:

2014 CPI= 101.5

2013 CPI= 100.8333333

2014 Inflation Rate= 0.66%

Explanation:

Consumer Price Index (CPI):

The index is calculated by taking the price of the basket in one year and dividing it by the price of the basket in another year. This ratio is then multiplied by 100.

Basket Price:

is the sum of the product of the quantitys and prices of the goods thata compose the basket for any given year.

Inflation Rate:

CPI (x+1) - CPI (x)

_____________

CPI (x)

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Answer:

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Budget is a framework which guides the implementation, assessment, monitoring of all government programs to ensure sound financi
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4 0
2 years ago
Glenda, the plant manager for ABC Corporation, views the results from the latest survey of employee attitudes. The results show
Brrunno [24]

Answer:

Human resource problem

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In the given scenario Glenda views the results of job satisfaction in the manufacturing plant and notices it has dropped significantly since the last survey.

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Rainbow [258]

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