question archive Calculating inflation using a simple price index Consider a fictional price index, the College Student Price Index (CSPI), based on a survey of annual purchases of a typical college student
Calculating inflation using a simple price index Consider a fictional price index, the College Student Price Index (CSPI), based on a survey of annual purchases of a typical college student
Subject:EconomicsPrice: Bought3
Calculating inflation using a simple price index Consider a fictional price index, the College Student Price Index (CSPI), based on a survey of annual purchases of a typical college student. Suppose the following table shows information on the market basket for the CSPI and the prices of each good in 2012, 2013, and 2014. The cost of each item in the basket and the total cost of the basket are shown for 2012. Perform these same calculations for 2013 and 2014, and enter the results in the table. Suppose the base year for this price index is 2012. Calculate and enter the value of the CSPI for the remaining years in the last row of the table. Between 2012 and 2013, the CSPI increased by . Between 2013 and 2014, the CSPI increased by .
