Three macroeconomic goals

Three macroeconomic goals

List three macroeconomic goals

Define: inflation, and the Consumer Price Index (CPI)

List the ‘categories’ of the CPI, along with their weighted (importance) values

Here is the situation:  Compute the inflation rate from 1945 to 1946, using the CPI table on page 4-2 as follows:

The inflation index value for 1946 (19.5) minus the inflation index value for 1945 (18.0) divided by the inflation index value for 1945, or 19.5-18.0 divided by 18.0 = .083 X 100 = 8.3%

Using this problem as an example, calculate the inflation rate for 2013, compared to 1913