Question cant do (1 Viewer)

[Tommy_69]

The table gives selected economic data for a hypothetical country.

Year|% change in real output on previous year| Unemplo rate%| CPI | CAD
1...............................4.5.................................................6.0...........120.....7.0
2...............................3.0.................................................6.1...........126.....6.5
3...............................0.4.................................................6.5...........128.....5.0
4...............................1.5.................................................7.2...........132.....6.0
5...............................2.1.................................................7.2...........136.....6.5

a) Calculate the inflation rate for Year 1

*ok how do you do this question when there is not previous figure for year 1

 

[motlai]

I'm not sure about this question, but if the question asks for inflation from base year, base year CPI is always 100. You could probably apply it here

 

[Rickdog]

this is a tricky question

use the cpi, and increase between yr 1 to 2, divided by year 1 x100
i.e 6/120x100 = 5%

this is only to calculate first year

formula for all other years is (CPI yr in question - CPI previous yr)/CPI prev yr x100
by the way you cant just add a base year of 100, it wont work

 

[motlai]

but that'll give the inflation rate of year 2, not year 1

i think the question is a bit dodgy

just adding the base year of 100 is not ideal, but i can't see any way else to find the inflation in year 1

 

[buffy19]

126/120 = 5%

 

[azza_3761]

no thats the inflation rate for year two.

U cant work out the inflation for year 1 cos u need a base year (which u cant be assumed)

 

[motlai]

base year is always by definition 100, but i agree that it shouldnt be assumed, coz wot we really need there is previous year, not base year

 

[Ednaw]

The table gives selected economic data for a hypothetical country.

Year|% change in real output on previous year| Unemplo rate%| CPI | CAD
1...............................4.5.................................................6.0...........120.....7.0
2...............................3.0.................................................6.1...........126.....6.5
3...............................0.4.................................................6.5...........128.....5.0
4...............................1.5.................................................7.2...........132.....6.0
5...............................2.1.................................................7.2...........136.....6.5

a) Calculate the inflation rate for Year 1

*ok how do you do this question when there is not previous figure for year 1

Yeh from what u've given us - year 1 is 120 and year 0 could be assumed as 100. Its not deffinate but just basing it on the probability that the data/question given are correct, its logical for us to assume the previous year has CPI 100

 

[tWiStEdD]

the rate of inflation in year 1 will be 0% on the facts before us.
it's simple guys: if the base year was year 1 and it read 100 (as it should) and they asked you that question, how would you answer then?
to say that year 0 is the base year is insane because that would make the inflation rate 20%, totally out of line with the figures you will get in the later years and thus obviously wrong. chill a little. before we had comprehensive data collection methods we could not determine the inflation rate and you would be right to assume that before the base year we did not have that ability either.

it's actually a really really silly question: 20% would seem to be the more logical answer but it's crazy when viewed with the rest of the answers; 0% would be crazy too because there's a CPI<100. Kick your teacher in the head for me: you shouldnt expect any such thing in the HSC.

 

[launcher169]

yeah i agree...you wont get that sort of question in the HSC....chill