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The Table Below Is the Laspeyres Price Index for a Basket

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Essay

The table below is the Laspeyres price index for a basket of goods related to the Computer IT industry.  Year 1988198919901991199219931994199519961997199819992000 Base 1988100101.5104.2103.9106.2107.8107.9108108.5109110111.5112 Base 1988 Year 2001200220032004200520062007200820092010201120122013 Base 1988112.4113.1114115.4117119.2121.6123.8124.9125.6129.3132.8138.9 Base 2005\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|}\hline \text { Year } & 1988 & 1989 & 1990 & 1991 & 1992 & 1993 & 1994 & 1995 & 1996 & 1997 & 1998 & 1999 & 2000 \\\hline \begin{array}{l}\text { Base } \\1988\end{array} & 100 & 101.5 & 104.2 & 103.9 & 106.2 & 107.8 & 107.9 & 108 & 108.5 & 109 & 110 & 111.5 & 112 \\\hline \begin{array}{l}\text { Base } \\1988\end{array} &\\\hline\\\\\hline \text { Year } & 2001 & 2002 & 2003 & 2004 & 2005 & 2006 & 2007 & 2008 & 2009 & 2010 & 2011 & 2012 & 2013 \\\hline \begin{array}{l}\text { Base } \\1988\end{array} & 112.4 & 113.1 & 114 & 115.4 & 117 & 119.2 & 121.6 & 123.8 & 124.9 & 125.6 & 129.3 & 132.8 & 138.9 \\\hline \begin{array}{l}\text { Base } \\2005\end{array} &\\\hline\end{array} (a) Calculate and interpret the percentage price change from 2005 to 2013, using the 1988 base
index.
(b) Change the base of this index series to 2005. Explain why a base change may be useful.
(c) Using the series with base 2005 that you created in part (b) recalculate the percentage price change from 2005 to 2013. Interpret.
(d) Compare your answers from parts (a) and (c), in particular explain which value is a change in percentage points and which value is the percentage change.


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A psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through goal-oriented, systematic procedures.

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A psychiatrist known for developing cognitive therapy and for his research on depression, which has influenced treatments for various disorders.

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A medical treatment most commonly used for major depressive disorder and bipolar disorder, involving electric currents passed through the brain to induce seizures.

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