Measuring the Economy 1

Problem : What does the CPI measure?

Problem :

Figure %: Goods and Services Consumed in Country C

Using the figure above, compute the CPI for Country C in year 1 using year 1 as the base year.

Problem : Using figure 1, compute the CPI for Country C in year 2 using year 1 as the base year.

Problem : What is the percent increase in the price level in Country C from year 1 to year 2?

Problem : What are 3 problems with CPI?