# B using 2010 as the base year calculate the cpi for

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Chapter 24 / Exercise 6
Principles of Economics
Mankiw
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(b) Using 2010 as the base year, calculate the CPI for each year.
(c) What is the inflation rate in 2011?7. Suppose that people consume only three goods, as shown in the table:(a) What is the percentage change in the price of each of the three goods?
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Chapter 24 / Exercise 6
Principles of Economics
Mankiw
Expert Verified
Spring 2014Principles of MacroeconomicsT.TungGolf Balls:Bottles of Gatorade:(b) Using a method similar to the consumer price index, compute the percentage change in the overall price level.
(c) If you were to learn that a bottle of Gatorade increased in size from 2011 to 2012, should that information affect your calculation of the inflation rate? If so, how?
(d) If you were to learn that Gatorade introduced new flavors in 2012, should that information affect your calculation of the inflation rate? If so, how?
8. The New York Times cost \$.15 in 1970 and \$2.00 in 2009. The average wage in manufacturing was \$3.23 per hour in 1970 and \$20.32 in 2009.(a) By what percentage did the price of a newspaper rise?
(b) By what percentage did the wage rise?