Inflation and Analyses of Monetary Policies

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Lbfuv11

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

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.

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Explanation & Answer

Here it is

Running head: INFLATION AND ANALYSES OF MONETARY POLICIES

Inflation and Analyses of Monetary Policies
Name
Institution Affiliation

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INFLATION AND ANALYSES OF MONETARY POLICIES
Introduction

Inflation can be defined as the increase in the general prices of products and services. The
increase in the prices of products and services mostly affects the final consumer in a supply
chain. This paper mainly focuses on the rate of inflation, monetary policy, and consumer price
index, which had been changing over time.
Results and Analysis
According to the Federal Reserve of St Louis website, the Consumer Price Index (CPI) of
coffee has considerably been changing overtime over the past few years. To be precise, this
study considers changes of CPI of coffer between 1995 and 2015. The inflation rate is recorded
after every five years, which means that the study utilized five periods. The data in this case
would be used to figure out the inflation rate of the product. The inflation equation/function is as
follows:
𝐼𝑛𝑓𝑙𝑎𝑡𝑖𝑜𝑛 = [{𝐶𝑃𝐼1 − 𝐶𝑃𝐼0 }/𝐶𝑃𝐼0 ] ∗ 100
The function portrayed above would be used in calculating the inflation. In this regard,
CPI0 is used represent preceding year while CPI1 is used to represents the next year...


Anonymous
Really helpful material, saved me a great deal of time.

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