Has inflation increased or decreased since the end of 2002?


1. Figure 8 reports the inflation rate from 1960 to 2002. As this chapter states, inflation continues to be a major a factor in economic policy. Go to ftp://ftp.bls .gov/pub/special.requests/cpi/cpiai.txt. Move data into Excel using the method described at the end of Chapter2. Delete all but the first and last column (date and annual CPI). Graph this data and compare it to Figure 8.

 

a. Has inflation increased or decreased since the end of 2002?

b. When was inflation at its highest?

c. When was inflation at its lowest?

d. Have we ever had a period of deflation? If so, when?

e. Have we ever had a period of hyperinflation? If so,

when?

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