Description
This needs 700 word paper and Excel We use Intuit
Inflation and Analyses of Monetary Policies
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
Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft®Office website. There are also additional tutorials via the web offering support for Office products.
Use an internet search or the University Library to locate information on the Consumer Price Index (CPI). 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." 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 your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
Explanation & Answer
I have done your work. In case of any issue inform me please. Thank you so much.
Running head: Inflation & Analyses of Monetary Policies
Inflation & Analyses of Monetary Policies:
Student’s Name:
Institution affiliation:
Date:
1
Inflation & Analyses of Monetary Policies
2
Introduction
Inflation can be explained as the aspect of the general and gradual fall in the purchasing
value of a currency, usually money. Inflation is related to the general increase in the prices of
commodities in a country as well as globally. Inflation is well known for the side negative effects
that it brings about. Unfortunately, the scholars and the economists claim that is impossible to
live without inflation. It is stated that at every given time, there is a percentage of inflation that
affects the country (Birkland, 2014). Once the value of the currency is devalued, the purchasing
power of the consumers is also affected negatively. With time, customers are only able to
consume less of the products they need with the same amount of money that they could spend
more on when the inflation level was lower. The most contradicting scenario is the tradeoff that
is said to exist between employment and the level of inflation. It is said that for the level of
employment to rise, some level of inflation will have to be anticipated as a result. On the other
hand, the when the employment level is low, the inflation level is said to be low.
Educational services
year
CPI
1995
93
Inflation rates from 1995
2005 115
0.237
2010 130
0.398
2015 139
0.495
Inflation & Analyses of Monetary Policies
3
Trends of inflation over the last five years
From the above diagram, it is evident that the rate of inflation rose to the highest level
from the year 2010 to 2015 as compared to the other years. Over the last five years, the level of
inflation has been increasing from year to year in a steady manner. As shown in the diagram
above, the rate of inflation was higher in the year 2015 than it was in the year 2010. Borrowing
an example from the behavior of inflation rates on ...
