Question

Refer to Table above a Estimate the inflation rate between 2005 and 2006 182.9-174.6/1746-100 -100.2 b. Estimate the CPI during 2007 6. In the table below are statistics showing the working age population, the labor force and total employment in year 1 and year 2. Make the computations necessary to complete the table. (Number of persons is in thousands.): Year 1 209,699 140,862 135 208 Year 2 211,864 141,815 125.973 Working age population (Adult Population)" Labor force Employed Unemployed Unemployment rate aso known as Clivian non-institutional population Page 4 of 7

Answer 1

Part-1)

1) Inflation rate = [(CPI this year – CPI last year)/CPI last year] × 100

= [(182.8 - 174.6) / 174.6] * 100

= 4.696%

2) Inflation rate = [(CPI this year – CPI last year)/CPI last year] × 100

4 = [(CPI this year – 182.8)/182.8] × 100

4/100*182.8 + 182.8 = CPI this year

CPI - Year 2007 = 190.112

Part-2)

	Year-1	Year-5
Civilian non-institutional population	209,699	211,864
Civilian labor force	140,862	141,815
Employed	135,208	135,973
Unemployed	5,654	6,742
Unemployment rate	4.0%	4.8%

Formulas used:

Unemployed = Civilian labor force - Employed

Unemployment rate = Unemployed / Civilian labor force * 100