Inflation

• TYING

  9 Dec 07, 19:43

  Calculate the Consumer Price Index (to one decimal place) and the Inflation Rate (to two decimal places) for the following years.
  The value of the market basket in the base year was $1110.
  Year Value of Market Basket Consumer Price Index (CPI) Inflation Rate
  2000 $ 1320.00
  2001 $ 1385.00
  2002 $ 1460.00
  2003 $ 1520.00
  2004 $ 1560.00
  2005 $ 1540.00
  b) In which year(s) did deflation occur?
  
  c) In which year(s) did disinflation occur?
  
  d) In which year(s) did hyperinflation occur?
  
  e) Mr Mark ChanÂ’s annual salary in the year 2001 was S$30,000 and it increased to S$30,900 in the year 2002. What has happened to Mr ChanÂ’s standard of living in the year 2002? Has it increased, decreased or remained the same?
  
  f) Which year is the base year?
  
  errr..how to do?
  
  and thanks!
  
• eagle

  9 Dec 07, 19:51

  Wah.... so long ago since I took econs....
  
  b) 2005
  
  CPI
  
  2000 1.245
  2001 1.248
  2002 1.315
  2003 1.369
  2004 1.405
  2005 1.387
  
  c) Disinflation is a decrease in the rate of inflation. Being how much prices are increasing per unit of time, it can be expressed using the word disinflation: The slowing of the rate of inflation per unit of time.
  
  My guess is
  2003
  2004
  
  d) dunno. My guess is year 2000 because I guess the base year is 1999
  
  e) with regards to base year,
  2001 salary in base year is 30k/1385*1110 = 24043.32
  2002 salary in base year is 30900/1460*1110 = 23492.47
  
  So decrease
  
  f) 1999?
  
  Not sure of any of the answers... Sorry
• TYING

  9 Dec 07, 19:54

  Thanks a lot!!
  
  Anyone knows the base year? How to calculate that...
• MohamedF

  9 Dec 07, 19:56

  omg... I FORGOT EVERYTHING!!!
• Nadare

  9 Dec 07, 20:00

  
• TYING

  9 Dec 07, 20:10

  Thanks eagle!
  
  Tmr is my econs test, hope these answers help.
• unclebutcher

  9 Dec 07, 23:02

  Originally posted by TYING:

  Thanks eagle!
  
  Tmr is my econs test, hope these answers help.

  UNI econs? if jc econs i next yr gg liao
• eagle

  9 Dec 07, 23:08

  Originally posted by TYING:

  Thanks eagle!
  
  Tmr is my econs test, hope these answers help.

  I think my answers may be wrong one leh.... Don't take it for granted...
  
  Uncle, I think this one is A levels learn one... My econs till that standard...
• unclebutcher

  9 Dec 07, 23:10

  Originally posted by eagle:

  I think my answers may be wrong one leh.... Don't take it for granted...
  
  Uncle, I think this one is A levels learn one... My econs till that standard...

  uh oh...
• eagle

  9 Dec 07, 23:11

  Originally posted by unclebutcher:

  uh oh...

  inflation is 2nd year, under macroeconomics
  
  so you haven't learn yet
  
  I find macroeconomics essays easier than microeconomics, because you can talk more rubbish. Micro is more of having the facts and graphs well memorized, something which I'm bad at... I like analysis more than memorising
• unclebutcher

  9 Dec 07, 23:18

  Originally posted by eagle:

  inflation is 2nd year, under macroeconomics
  
  so you haven't learn yet
  
  I find macroeconomics essays easier than microeconomics, because you can talk more rubbish. Micro is more of having the facts and graphs well memorized, something which I'm bad at... I like analysis more than memorising

  yeah me too...i dislike memorising simi price discrimination 1st degree 2nd degree...... so j2 shud be a good yr for my econs
• eagle

  9 Dec 07, 23:18

  Originally posted by unclebutcher:

  yeah me too...i dislike memorising simi price discrimination 1st degree 2nd degree...... so j2 shud be a good yr for my econs

  was good for me
  
  Econs from E to A
  In j1 was C...
• TYING

  10 Dec 07, 09:21

  Originally posted by unclebutcher:

  UNI econs? if jc econs i next yr gg liao

  nah...poly econs
• unclebutcher

  10 Dec 07, 16:59

  Originally posted by TYING:

  nah...poly econs

  wa worse i ggxx