I need the answers to 1&2, please use logical, written-out answers. Directions:

Question

I need the answers to 1&2, please use logical, written-out answers.

Directions: Complete, scan, and submit the following exercises as a single PDF by the appropriate deadline. These exercises most definitely need to be submitted on separate paper. Remember to use full sentences to answer questions, include the appropriate units, and support your answers. If a calculation took place, it needs to be on the paper. Work must be neat and logically laid out. Only the 3 formulas we covered in class are needed to do this.

Explanation / Answer

Question 1

(a)

Calculate the percentage change in consumer prices between 1925 and 1935 -

CPI in 1925 = 17.5

CPI in 1935 = 13.7

% change in consumer prices = [(CPI in 1935 - CPI in 1925)/CPI in 1925] * 100

% change in consumer prices = [(13.7 - 17.5)/17.5] * 100 = -21.71%

The percentage change in consumer prices between 1925 and 1935 is -21.71%.

This means consumer prices has decreased by 21.71% between 1925 and 1935.

(b)

Calculate the percentage change in consumer prices between 2000 and 2005 -

CPI in 2000 = 166.1

CPI in 2005 = 195.3

% change in consumer prices = [(CPI in 2005 - CPI in 2000)/CPI in 2000] * 100

% change in consumer prices = [(195.3 - 166.1)/166.1] * 100 = 17.58%

The percentage change in consumer prices between 2000 and 2005 is 17.58%.

This means consumer prices has increased by 17.58% between 2000 and 2005.

(c)

Calculate the percentage change in consumer prices between 1920 and 2009 -

CPI in 1920 = 20

CPI in 2009 = 211.1

% change in consumer prices = [(CPI in 2009 - CPI in 1920)/CPI in 1920] * 100

% change in consumer prices = [(211.1 - 20)/20] * 100 = 955.5%

The percentage change in consumer prices between 1920 and 2009 is 955.5%.

This means consumer prices has increased by 955.5% between 1920 and 2009.

(d)

Calculate the percentage change in consumer prices between 2008 and 2009 -

CPI in 2008 = 215.3

CPI in 2009 = 211.1

% change in consumer prices = [(CPI in 2009 - CPI in 2008)/CPI in 2008] * 100

% change in consumer prices = [(211.1 - 215.3)/215.3] * 100 = -1.95%

The percentage change in consumer prices between 2008 and 2009 is -1.95%.

This means consumer prices has decreased by 1.95% between 2008 and 2009.

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