Consider the following price indexes 90 in 2008 100 in 2009, Business Economics

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Consider the following price indexes 90 in 2008 100 in 2009

Consider the following price indexes: 90 in 2008, 100 in 2009, 110 in 2010, 121 in 2011, and 150 in 2012. (show all work)

a) What is the base year? How do you know this?

b) What is the inflation rate between 2009 to 2010?

c) What is the inflation rate between 2010 to 2011?

d) If the cost of a market basket in 2009 was $2,000, what is the same cost in 2008 and in 2011?

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Business Economics: Consider the following price indexes 90 in 2008 100 in 2009

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Business Economics: Consider the following price indexes 90 in 2008 100 in 2009

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