Consumer Price Index: Assignment
ECON1102
SUMMER SCHOOL 2012/2013
SUBMISSION QUESTION 1:
DUE: FRIDAY 21 DECEMBER, 2012 BY 5PM.
(i) Explain the concept of the consumer price index (CPI) and explain how it is measured. What is the latest CPI figures in Australia (Sept 2012) and what were the main factors influencing the CPI movements in this quarter. (ii) Is the CPI an accurate measure of inflation? Explain the importance of inflation when calculating the real interest rate.
(iii) What are the economic costs of inflation?
(iv) Is deflation a potentially more serious problem than inflation?
In writing your answer you should refer to Chapter 1 of the textbook and the article “Inflation, deflation and all that” available on the Macroeconomics 1 website in
Week 1: Unit 1 readings. For the latest statistics refer the Australian Bureau of Statistic website: http://www.abs.gov.au
This question will be marked out of 20, but will contribute to 6 % of your assessment.
Instructions
The written answer is to be in the form of a typed report and should include referencing. The written answer is to be a maximum of 500-800 words. This excludes diagrams and references. Information on correct referencing can be found in the under the General information Icon on Blackboard.
You must record your name and student number in the Header of the report.
If you fail to submit your submission questions by the due date it will be given a mark of zero. No late submission will be accepted without a medical certificate (or equivalent) accompanying it.
You must submit your assignment via Blackboard under Submission 1 Question 1 upload. Click on View/Complete. The assignment will be check for plagiarism via Turnit in software. Assignments will not be accepted via email.
Please keep a copy of your assignment. Marked assignments will not be returned, but you will be given feedback via Blackboard.
Submission question 1
(1)：
The CPI, which is the abbreviation
SUMMER SCHOOL 2012/2013
SUBMISSION QUESTION 1:
DUE: FRIDAY 21 DECEMBER, 2012 BY 5PM.
(i) Explain the concept of the consumer price index (CPI) and explain how it is measured. What is the latest CPI figures in Australia (Sept 2012) and what were the main factors influencing the CPI movements in this quarter. (ii) Is the CPI an accurate measure of inflation? Explain the importance of inflation when calculating the real interest rate.
(iii) What are the economic costs of inflation?
(iv) Is deflation a potentially more serious problem than inflation?
In writing your answer you should refer to Chapter 1 of the textbook and the article “Inflation, deflation and all that” available on the Macroeconomics 1 website in
Week 1: Unit 1 readings. For the latest statistics refer the Australian Bureau of Statistic website: http://www.abs.gov.au
This question will be marked out of 20, but will contribute to 6 % of your assessment.
Instructions
The written answer is to be in the form of a typed report and should include referencing. The written answer is to be a maximum of 500-800 words. This excludes diagrams and references. Information on correct referencing can be found in the under the General information Icon on Blackboard.
You must record your name and student number in the Header of the report.
If you fail to submit your submission questions by the due date it will be given a mark of zero. No late submission will be accepted without a medical certificate (or equivalent) accompanying it.
You must submit your assignment via Blackboard under Submission 1 Question 1 upload. Click on View/Complete. The assignment will be check for plagiarism via Turnit in software. Assignments will not be accepted via email.
Please keep a copy of your assignment. Marked assignments will not be returned, but you will be given feedback via Blackboard.
Submission question 1
(1)：
The CPI, which is the abbreviation
References: Bade&Parkin 2010 “ Foundations of Macroeconomics 4th ed.” pp144-145, p148, pp317-318 Pearson Education, Inc Bernanke, Olekalns &Frank 2011 “ principles of Macro economics 3rd ed.” p25,pp26-28,pp31-33, Australia, McGraw-Hill Australia Pty Ltd Steve Saville 2008 “The real interest rate” http://news.goldseek.com/SpeculativeInvestor/1221571691.php Mr. GR Stevens 2002 “inflation, Deflation and All That” Australian Business Economists 2002 Forecasting Conference Dinner, Sydney, p11 Australia bureau of statistics “6401.0 - Consumer Price Index, Australia,”2012 http://www.abs.gov.au/ausstats/abs@.nsf/mf/6401.0 Australia bureau of statistics “Australian Consumer Price Index (CPI)”2012 http://www.rateinflation.com/consumer-price-index/australia-cpi Australia bureau of statistics “Consumer Price Index FAQs “What is a Consumer Price Index (CPI)?”2012 http://www.abs.gov.au/websitedbs/webfaq.nsf/home/consumer+price+index+faqs#Anchor1