Below are some income and Consumer Price Index data for Bill living in the U.S. a) Using
Question:
Below are some income and Consumer Price Index data for Bill living in the U.S.
a) Using the base year as the comparison year, calculate the Real Value of Bill?s Income for 2010 measured in base year dollars. Please show the work done to get your answer. Please calculate your answer to the nearest dollar.
b) Using the base year as the comparison year, calculate the Real Value of Bill?s Income for 2011 measured in base year dollars. Please show the work done to get your answer. Please calculate your answer to the nearest dollar.
c) Using the base year as the comparison year, calculate the Real Value of Bill?s Income for 2012 measured in base year dollars. Please show the work done to get your answer. Please calculate your answer to the nearest dollar.
d) Using the information above calculate the inflation rate from 2011 to 2012. Please show the work done to get your answer. Please calculate your answer to the second decimal place (hundredths place).
e) In one factual sentence please state what information your answer in (e) above tells us. (I did not want any opinion of whether you think your answer is high or low.) In other words, the inflation rate you calculated in (e) above tells us what information?