Inflation and Analyses of Monetary Policies

User Generated

Epnz711

Economics

Description

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.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running head: INFLATION AND MONETARY POLICIES

INFLATION AND MONETARY POLICIES
Name:
Institution affiliation:
Date:

1

INFLATION AND MONETARY POLICIES

2

Introduction
Inflation entails the gradual the rise in prices of goods and services over a period
of time like a year (Berlatsky, 2013). When prices of goods and services rice, more money
will be required to buy them. As a result, the purchasing capability of money decreases.
Consumers will afford less goods and services. The value of unit currency will diminish
because more units will be required to buy goods and services. To monitor the inflation
changes, Consumer Price Index abbreviated as CPI is used (A Guide To The Consumer
Price Index,1993). CPI measures weighted average prices of selected goods and
services that are commonly used. The price change of each item on the selected basket
is taken and an average calculated to find CPI. The formula of calculating CPI is as below:

The Cost of Market Basket in Given Year
CPI =

_______________________________ X 100
Cost of Market Basket for Base Year

Chosen product

Food a...


Anonymous
I use Studypool every time I need help studying, and it never disappoints.

Studypool
4.7
Indeed
4.5
Sitejabber
4.4

Similar Content

Related Tags