Turn on thread page Beta
    • Thread Starter
    Offline

    0
    ReputationRep:
    Admittedly I have missed a couple of lectures on this which might explain the gaps in my knowledge. But any assistance on these questions would be much appreciated, as I really don't know what to do!

    a) Let pt = (pt1, ..... , ptn) denote the price system (i.e. the prices of goods 1 to n) at date t, with t varying
    from 0 to any arbitrary date T .
    Let x = (x1, x2, ..... , xn) be a commodity bundle. What is the value of x at date 0? At date t? What is the level of “inflation” between time 0 and time t for that commodity bundle x?

    b) Define the price index associated with the commodity bundle x? Is such a price index independent of the commodity bundle x? What solution would you propose to obtain a reasonnably accurate measure of "inflation?"

    Thanks in advance!
 
 
 
Reply
Submit reply
Turn on thread page Beta
Updated: December 2, 2011

University open days

  • University of East Anglia (UEA)
    Could you inspire the next generation? Find out more about becoming a Secondary teacher with UEA… Postgraduate
    Thu, 18 Oct '18
  • University of Warwick
    Undergraduate Open Days Undergraduate
    Sat, 20 Oct '18
  • University of Sheffield
    Undergraduate Open Days Undergraduate
    Sat, 20 Oct '18
Poll
Who is most responsible for your success at university

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.