Economics - (*CPI*)
posted by CrankSt4r .
In Brazil, the reference base period for the CPI is December 1993. In September 2000, prices had risen by 1,565.93 percent since the base period. The inflation rate in Brazil during the year ending September 2001 was 6.46 percent, and during the year ending September 2002, the inflation rate was 7.93 percent.
a) What is the CPI in Brazil for December 1993?
b) Calculate Brazil's CPI in September 2000, September 2001, and September 2002.
c) Is the price level in Brazil rising or falling?
d) Did Brazil's inflation rate increase or decrease in 2001 and in 2002?
e) Was the inflation rate in Brazil between 2000 and 2002 greater or less than the inflation rate in the United States?