Name
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I.D.#
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RESEC-323: Financial Analysis for Consumers and Firms
Professor M.J. Alhabeeb
Fall 2023
Assignment # 1 (50 points)
Due: October 12 , 2023
1.
Compile a list of the Consumer Price Index (CPI) in the United States for the years (1976-2023).
Note: Please check the top of your reference table and make sure that the base year was set
as 1982-1984. It would confirm that you are getting the right data set.
For the CPI of 2023, take the average of whatever number of months you get.
2.
Calculate the inflation rate (f) for each of the years in that period.
(Hint: You are going to start calculating the inflation rate in 1976, and for that you need the
CPI in 1975).
Please show the details of your calculations of at least three random years.
3.
Draw a curve of each of the (CPI) and (f) on one diagram. You may use computer graphing, but
it is optional.
(Years should be on the X-axis, and both
CPI
and
f
on a double Y-axes). It is
advised to use different but comparable scales for each axis. That is the CPI runs by 10's
(10,20,30......and inflation by ones (1,2,3,.........
4.
On your graph, mark a column for the base year(s)
.
Also mark the years of the highest, and
lowest cost of living
. (cost of living is told by inflation)
5.
Write one page on the 2022 Inflation Reduction Act and its impact on consumers and firms.
The following are examples of the many references where you find the information you need:
(All are available in the U-Mass main Library, Government documents). These references
and many more are online too
1.
Monthly Labor Review
2.
Federal Reserve Bulletin
3.
Survey of Current Business - Business Condition Digest - Statistical Abstracts of the
U.S. - Economic Report of the President - CPI Detailed Report by BLS.
4.
Handbook of Labor Statistics
5.
Economic Indicators
