1. Given the table of that people always use in Ireland Сycle Car Years Q P 20 $35 30 $156 25 $37 37 Q P 2018 2019 $168 a. Using a method similar to the CPI, compute the percentage change in overall price level. Use 2018 as the base year and fix the basket at 7 Cycle and 3 Car. b. Using a method similar to the GDP Deflator, compute the percentage change in overall price level. Use 2018 as the base year.

1. Given the table of that people always use in Ireland Сycle Car Years Q P 20 $35 30 $156 25 $37 37 Q P 2018 2019 $168 a. Using a method similar to the CPI, compute the percentage change in overall price level. Use 2018 as the base year and fix the basket at 7 Cycle and 3 Car. b. Using a method similar to the GDP Deflator, compute the percentage change in overall price level. Use 2018 as the base year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. Given the table of that people always use in Ireland
Сycle
Car
Years
Q P
20 $35 30 $156
25 $37 37 $168
Q P
2018
2019
a. Using a method similar to the CPI, compute the
percentage change in overall price level. Use 2018
as the base year and fix the basket at 7 Cycle and 3
Car.
b. Using a method similar to the GDP Deflator,
compute the percentage change in overall price
level. Use 2018 as the base year.
If Jessica and Annisa work in the same industry,
Jessica salary was $75,550 per year in 2010 and
Annisa salary was $125,750 per year in 2019.
Government statistics show a CPI of 120 for 2010.
Find how much Jessica salary is worth in 2019. Did
he enjoy a higher or lower standard of living than
Annisa?

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