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1. Calculating inflation using a simple price index
Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student’s annual purchases. Suppose the following table
shows information on the market basket for the CSPI and the prices of each of the goods in 2010, 2011, and 2012.
The cost of each item in the basket and the total cost of the basket are shown for 2010.
Perform these same calculations for 2011 and 2012, and enter the results in the following table.
Keep the Highet: 2 / 2
2. Comparing salaries from different times
Consider golfers who led the Professional Golfers’ Association of America (PGA) in winnings at different points in time. Note that the winnings are nominal
figures (unadjusted for inflation).
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