.The table below represents a simple economy. Refer to the table data to answer the questions that follow. Price Per Unit Units Purchased 2016 2017 2018 2019 Tacos 20 4.00 4.25 4.25 4.75 Towels 8 8.00 8.50 9.00 10.25 Tequilas 3 17.00 18.00 19.00 20.00 Suppose 2017 is considered the base year, then what is the price index that year? With 2017 as the base year, what is the price index for 2018? With 2017 as the base year, what is the price index for 2016? What is the inflation rate between 2018 and 2019? Given the inflation rate you calculated in (d), suppose the nominal output of the three goods rose by x%, what would be the overall change in the real output of this economy?
.The table below represents a simple economy. Refer to the table data to answer the questions that follow. Price Per Unit Units Purchased 2016 2017 2018 2019 Tacos 20 4.00 4.25 4.25 4.75 Towels 8 8.00 8.50 9.00 10.25 Tequilas 3 17.00 18.00 19.00 20.00 Suppose 2017 is considered the base year, then what is the price index that year? With 2017 as the base year, what is the price index for 2018? With 2017 as the base year, what is the price index for 2016? What is the inflation rate between 2018 and 2019? Given the inflation rate you calculated in (d), suppose the nominal output of the three goods rose by x%, what would be the overall change in the real output of this economy?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Q3.The table below represents a simple economy. Refer to the table data to answer the questions that follow.
|
|
|
|
|||
|
|
Units |
2016 |
2017 |
2018 |
2019 |
|
Tacos |
20 |
4.00 |
4.25 |
4.25 |
4.75 |
|
Towels |
8 |
8.00 |
8.50 |
9.00 |
10.25 |
|
Tequilas |
3 |
17.00 |
18.00 |
19.00 |
20.00 |
- Suppose 2017 is considered the base year, then what is the price index that year?
- With 2017 as the base year, what is the price index for 2018?
- With 2017 as the base year, what is the price index for 2016?
- What is the inflation rate between 2018 and 2019?
- Given the inflation rate you calculated in (d), suppose the nominal output of the three goods rose by x%, what would be the overall change in the real output of this economy?
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