Macroeconomics Australia Study Set 1

The formula for the CPI is

-Based on the table above, the CPI for 2018 is

-The data in the table above show the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The CPI in 2011 is

-The data in the table above show the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The inflation rate between 2011 and 2012 was

To find the cost of the CPI market basket in the base period prices we have to multiply the

The Consumer Price Index market basket contains

The reference base period for the CPI has an index number of

-Based on the table above, the cost of the base period market basket in the base period is

What good or service is given the most weight in the CPI?

The Consumer Price Index measures the average prices paid by

Suppose that last year the price of strawberries was $2 and the price of milk was $1. This year, the price of milk is $2 and the price of strawberries is $1. Which of the following statements is true?

-Based on the table above, the cost of the base period market basket in 2018 is

The CPI market basket

Constructing the CPI involves which of the following stages? i. Conducting the quarterly price survey ii. Converting the CPI to an international index iii. Selecting the CPI market basket

-The table above gives the CPI for a nation. Based on the table, we can determine that the reference base period is

Which of the following changes would have the largest impact on the CPI?

The CPI is a measure of the

If the cost of the CPI market basket at current period prices is $275 and the cost of the CPI market basket at base period prices is $350, the CPI is

-The data in the table above show the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The CPI in 2012 is

The CPI market basket is determined by