1. Suppose typical urban households bought their basket of consumer goods and services for$20,000 in the base year and in the current year they have to spend $64,000 for that samebasket. Calculate current year CPI. (Show your work)(64,000/20,000)X100- CPI- 3202. What does the CPI you found in Q1 tell you about how much prices changed from the base yearto the current year?

The CPI or consumer price index is the measure of the change in the prices of the consumer basket of…

Answered: 1. Suppose typical urban households…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Macroeconomic Measurements, Part I: Prices And Unemployment

Section: Chapter Questions

Problem 9WNG

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Year Income CPI 2012 2013 62,464 65,692 226.7 230.3 2014 2015 66,899 70,500 233.9 233.7 2016 72,904 236.9 Answer of the following questions using the data in the table above (Show the analysis): a) Provide the adjusted median incomes (convert to 2016 dollars) b) Calculate the mean of the nominal incomes c) Calculate the mean of the adjusted incomes d) Explain the importance of adjusting values for inflation (2-5 sentences)
Question 4 Between 2015 and 2016, the CPI of a small nation rose from 1.82 to 1.85. If household incomes rose by 3% during that period of time, which of the following is true? O The purchasing power of household income fell between 2015 and 2016. O The purchasing power of household income rose between 2015 and 2016. O The purchasing power of household income remained constant between 2015 and 2016. O The CPI cannot be used to determine how the purchasing power of household income changes over time.
19
Questions: 1. Compute the total costs for all the years (2017 to 2020). 2. Compute the price index for each year using 2019 as the base year. 3. Compute the inflation rate for each year. NOTE: Explain and support the answer with calculations.
7. For the consumer price index values shown, calculate the rate of inflation in each year from 1930 to 1933. What is unusual about this period, relative to recent experience? Year 1929 1930 1931 1932 1933 CPI 14.2 14.0 12.7 11.5 10.9
2018 2019 Item Quantity Price Quantity Price Books 10 €30 8 €50 Pens 20 €1 15 €2 In 2018, consumers in a hypothetical economy consumed only books and pens. The prices and quantities for 2018 and 2019 are listed in the table above. The reference base period is 2018. Calculate the CPI in 2019. Give only a numerical answer. Where needed, use only a point () for decimals (e.g., 3.25, not 3,25) and no thousands separator (e.g., 2000, not 2,000).
In 1917, US Senators received a nominal salary of $7,500, and the CPI was 17.3. In 2017, US Senators received a nominal salary of $174,000, and the CPI was 245.1. (a) Fill in the blanks in the following table with the values of US Senators' 1917 salary in terms of 2017 dollars (bottom-left cell) and of US Senators' 2017 salary in terms of 1917 dollars (top-right cell). Round to the nearest whole dollar when necessary. Units Senators' 1917 Salary Senators' 2017 Salary 1917 Dollars 7,500 Number 2017 Dollars Number (b) The purchasing power of US Senators' salaries 174,000 Click for List from 1917 to 2017.
10. how much would it cost?
In an imaginary economy, a typical consumer basket consists of 40 candles and 15 lighter. You are given the price of these two products in three subsequent years. Price of a Candle Price of a Lighter $14 $1 $15 $2 $17 $3 2017 2018 2019 Find out the CPI for 2017, 2018, and 2019. Assume the base year is 2017. Note: Make sure to show all the steps. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 44 † {} P 57 ky X² X₂ 10pt ¶ ¶ ABC !!! A ¶ "Ω A Tx X x Q5 AA : * HA 旺图 O WORDS POWERED BY TINY
1. Refer to the information in the table. Using 2001 as the base year, Compute CPI in 2003 * 145 255 183 220 2. Refer to the information in the table. Compute the percentage change in CPI between 2001 and 2003 * 120% 83% Table 1 Sami spent all his income in 2001 and 2003 on the following market basket: 2001(Base year) Quantity 2000 2003 Price Quantity 1250 Item Price Food $1 $2 $1500 $80 Housing 4 $500 3 |Clothing 40 $50 50 155 45 3. Refer to the information in the table. Sami's nominal income in 2001 is equal to_ 11,000 13,200 6,000 2,044 4. Refer to the information in the table, Sami's real income in 2003 is equal to 5,000 1,303 6,000 11,000
Congratulations! Your boss has given you a raise. However, you want to know whether your purchasing power has increased, since inflation is also rising. The table below gives you data for wages and the Consumer Price Index (CPI) for the last two years. Wage ($/day) CPI Year 1 $ 2000 CPI 120 Year 2 $2200 CPI 129.6 The nominal percentage increase in your wage is enter your response here%. (Round your answer to one decimal place.) Part 2 The real percentage increase in your wage is enter your response here%. (Round your answer to one decimal place.)
Covid 19 pandemic has force the people in the economy Love & Laughter, to consume only 2 goods, food and clothing. The CPI is derived from the market basket of goods which consists of 25 units of food and 5 units of clothing. FOOD Clothing 2018 price per unit $8 $20 2019 price per unit $12 $40 (i). What are the percentage increases in the price of food and in the price of clothing? (ii). What is the percentage increase in the CPI? (iii). Do these price changes affect all consumers to the same extent? Explain.

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