Wk 4 – Inflation and Analyses of Monetary Policies [due Tues] Top of Form Bottom of Form ...

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Wk 4 – Inflation and Analyses of Monetary Policies [due Tues]     Top of Form      Bottom of Form    Assignment Content    Top of Form    Purpose of Assignment  This assignment will introduce students to the U.S. Department of Labor's Bureau of Labor Statistics (BLS) data and provide students with the skills to calculate inflation and interpret the Consumer Price Index (CPI).Note: The BLS is the primary source of information on inflation, but their data is re-posted in other sources, such as the St. Louis Federal Reserve FRED site, among others.    Resource  o Inflation and Analyses of Monetary Policies Grading Guide  o Tutorial help on Exceland Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products.    Assignment Steps  Usean internet search or the University Library to locate information on the Consumer Price Index (CPI). Internet sites you might find useful include the Bureau of Labor Statistics (BLS) and the Federal Reserve of St. Louis FRED website.    Developa minimum 700-word analysis of inflation. Include the following:  o Choose a product or service you currently consume/use, such as apparel or educational services, that is included in the CPI's "market basket."Find the annual CPI index numbers for your chosen good or service for the years 1995, 2005, 2010, and 2015.Enter those index numbers in an Excel spreadsheet and calculate the percent change (inflation rates) in those index numbers from 1995 to 2005, from 1995 to 2010, and from 1995 to 2015.  o Analyze the trends in overall inflation over the last five years and whether your income has kept pace with inflation.How has inflation over the last five years affected you and/or your family?  o Discuss how a business manager, such as a human resources manager, might use CPI statistics.    Formatyour paper according to APA guidelines.    Submit your assignment.    Bottom of Form    Individual Assignment: Inflation and Analyses of Monetary Policies    Purpose of Assignment    This assignment will introduce students to the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) data and provide students with the skills to calculate inflation and interpret the Consumer Price Index (CPI). Note: The BLS is the primary source of information on inflation, but their data is re-posted in other sources, such as the St. Louis Federal Reserve FRED site, among others.    Resources Required    Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.  Grading Guide                   Content            Met            Partially Met            Not Met            Comments:                 Chose a product   or service student currently consumes/uses, such as apparel or educational   services, that is included in the CPI’s “market basket.” Found the annual CPI index numbers for   student’s chosen good or service for the years 1995, 2005, 2010, and XXXXXXXXXXEntered those index numbers in   an Excel® file and calculated the percent change (inflation rates)   in those index numbers from 1995 to 2005, from 1995 to 2010, and from 1995 to   2015.                                                  Analyzed the   trends in overall inflation over the last five years and whether student’s   income has kept pace with inflation.   Answered the following question:   ·   How has inflation over   the last five years affected you and/or your family?                                                 Discussed how a   business manager, such as a human resources manager, might use CPI   statistics.                                                  The analysis is a minimum of   700 words in length.                                                                         Total   Available         Total Earned                                        85         #/85                                      Writing    Guidelines            Met            Partially Met            Not Met            Comments:                 The paper—including tables and graphs, headings, title   page, and reference page—is consistent with APA formatting guidelines and   meets course-level requirements.                                                 Intellectual property is recognized with in-text citations   and a reference page.                                                 Paragraph and sentence transitions are present, logical,   and maintain the flow throughout the paper.                                                 Sentences are complete, clear, and concise.                                                 Rules of grammar and usage are followed including spelling   and punctuation.                                                                   Total   Available         Total Earned                                        35         #/35                                      Assignment Total            #            120            #/120                             Additional comments:

Komalavalli · Accepted Answer

5
Inflation and Monetary Policies
CPI and Footwear Purchase:
Consumer Price Index measures the average level of prices of the goods and services consumed by an urban family.CPI index is calculated by dividing expenditure on a set of goods in the given year by expenditure on the same goods in the base year. To measure CPI, we always consider 100 as a base year price. Now we have a look on CPI index and Footwear purchase for the period 1995 to 2015. Seasonally adjusted annual average value of CPI-U footwear data was obtained from the Bureau of Labor Statistics from 1995 to 2015.Same data are plotted in the below graph.
 
From the above graph we can interpret that CPI index was at the decreasing trend for an initial decade (1995-2005), which indicates a decrease in average price level of footwear purchase among the urban consumer. For the next decade (2005-2015) the CPI was at increasing trend indicates that the average price level of footwear purchase was increasing over the periods.
Inflation and Footwear Purchase:
Inflation measures the rate at which the average level of price of a selected consumer basket of goods and services. It is a quantitative measure and expressed in percentage. Inflation for the above period is calculated using the formula:  Inflation rate = [(CPI this year – CPI last year)/CPI last year] × 100.Inflation rate indicates the purchasing power of the consumer.

Wk 4 – Inflation and Analyses of Monetary Policies [due Tues]

Individual Assignment: Inflation and Analyses of Monetary Policies

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