DP Economics Questionbank

The consumer price index for 2014 was 101.23. Calculate the rate of inflation between 2014 and 2015 (the base year).

Calculate the cost of the typical basket in 2016.

The cost of the typical basket was $50 in 2017. Calculate the consumer price index (CPI) for 2017.

In 2019, nominal GDP was $102 874.55 million. Using data from Table 2, identify whether Country A experienced inflation or deflation or disinflation in 2019.

Define the term inflation indicated in bold in the text (paragraph [2]).

Outline how a producer price index may prove useful in predicting future inflation.

Distinguish between inflation and disinflation.

Calculate the inflation rate for 2013 and for 2015 for Country A. Enter your results in Table 1.

The consumer price index (CPI) is a weighted price index. Outline one reason why weights are used in the construction of the CPI.

Identify a period in which Country Y experienced disinflation.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Calculate the rate of consumer price inflation in 2016.

Using the GDP deflator, calculate the percentage change in real GDP between 2014 and 2015.

Calculate the inflation rate for 2014 and for 2015. Enter your results in Table 1.

Using the data in Table 1 to support your answer, identify two reasons why many economists would consider Country A’s economy to be performing poorly in 2012.