Question

8. The Master of Coin has devised a method for tracking prices and measuring inflation by comparing prices in the current year to prices in the base year of 298 AC. He calls the new statistic the Consumer Price Index (CPI). The average citizen of King's Landing spends their money on four goods which are included in the fixed basket of the CPI. The prices and quantities are given in the following table: Year Price Quantity Fish 299 AC $6.55/lb. 650 lbs. 300 AC $8.75 650 298 AC $6.25 Clothing 299 AC $50 12 300 AC $55 12 298 AC $50 Beer 299 AC $3.25/pint 1,280 pints 300 AC $5.00 1,280 298 AC $3.00 Housing 299 AC $18,000/year 1 300 AC $18,150 1 298 AC $17,950 a. Calculate the CPI for 299 AC and 300 AC using 298 AC as the base period. b. What was the inflation rate between 299 AC and 300 AC?

          8. The Master of Coin has devised a method for tracking prices and measuring inflation by
comparing prices in the current year to prices in the base year of 298 AC. He calls the
new statistic the Consumer Price Index (CPI). The average citizen of King's Landing
spends their money on four goods which are included in the fixed basket of the CPI. The
prices and quantities are given in the following table:
Year
Price
Quantity
Fish
299 AC
$6.55/lb.
650 lbs.
300 AC
$8.75
650
298 AC
$6.25
Clothing
299 AC
$50
12
300 AC
$55
12
298 AC
$50
Beer
299 AC
$3.25/pint
1,280 pints
300 AC
$5.00
1,280
298 AC
$3.00
Housing
299 AC
$18,000/year
1
300 AC
$18,150
1
298 AC
$17,950
a. Calculate the CPI for 299 AC and 300 AC using 298 AC as the base period.
b. What was the inflation rate between 299 AC and 300 AC?

8. The Master of Coin has devised a method for tracking prices and measuring inflation by
comparing prices in the current year to prices in the base year of 298 AC. He calls the
new statistic the Consumer Price Index (CPI). The average citizen of King's Landing
spends their money on four goods which are included in the fixed basket of the CPI. The
prices and quantities are given in the following table:
Year
Price
Quantity
Fish
299 AC
6.55/lb.
650 lbs.
300 AC8.75
650
298 AC
6.25
Clothing
299 AC50
12
300 AC
55
12
298 AC50
Beer
299 AC
3.25/pint
1,280 pints
300 AC5.00
1,280
298 AC
3.00
Housing
299 AC18,000/year
1
300 AC
18,150
1
298 AC17,950
a. Calculate the CPI for 299 AC and 300 AC using 298 AC as the base period.
b. What was the inflation rate between 299 AC and 300 AC?

Added by Ruth S.

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