Inflation and Analyses of Monetary Policies, economics homework help

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wtyr75

Economics

Description

Purpose of Assignment

This assignment will introduce students to the U.S. Department of Labor's Bureau of Labor Statistics (BLS) data and provide students with the skills to calculate inflation and interpret the Consumer Price Index (CPI). Note: The BLS is the primary source of information on inflation, but their data is re-posted in other sources, such as the St. Louis Federal Reserve FRED site, among others.

Assignment Steps

Internet sites you might find useful include the Bureau of Labor Statistics (BLS) and the Federal Reserve of St. Louis FRED web site although you are allowed to use other sources.

Develop a minimum 700-word analysis of inflation by including the following:

  • Choose a product or service you currently consume/use, such as apparel or educational services, that is included in the CPI's "market basket." (AS THE TUTOR YOU MAY SELECT THE PRODUCT OR SERVICE BUT BEFORE YOU PROCEED CAN YOU LET ME KNOW WHAT YOU PICK PLEASE) Find the annual CPI index numbers for your chosen good or service for the years 1995, 2005, 2010, and 2015. Enter those index numbers in an Excel® file and calculate the percent change (inflation rates) in those index numbers from 1995 to 2005, from 1995 to 2010, and from 1995 to 2015.
  • Analyze the trends in overall inflation over the last five years and whether your income has kept pace with inflation. How has inflation over the last five years affected you and/or your family?
  • Discuss how a business manager, such as a human resources manager, might use CPI statistics.

Cite a minimum of three scholarly, peer-reviewed references.

Format paper consistent with APA guidelines.


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Explanation & Answer

Attached.

1

Running Head: INFLATION AND ANALYSES OF MONETARY POLICIES
Inflation and Analyses of Monetary Policies

Student’s Name
Institution

2

INFLATION AND ANALYSES OF MONETARY POLICIES
Inflation and Analyses of Monetary Policies
Inflation is the situation where there is more money chasing fewer goods in the market.
According to the website of Federal Reserve St Louis, there have been changes in the Price
Index of Coffee other time. This has been happening from 1995 to 2015. To compute inflation,
the files will be under focus.
Inflation=〖[{CPI〗_1-〖CPI〗_0}/〖CPI〗_(0 )]*100
This formula helps in calculation of inflation
Where CPI0 is the previous year
CPI1 is the following year.
The rate of inflation has been increasing from 1995 to 2010. The inflation rate has been
declining from 2010 to 2015; although there was a decline, from an economic view, the inflation
is still high. This tells that prices of coffee have been decreasing from 2010 to 2015 while
increasing from ...


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