100 $2.00 180 2007 $5.00 120 $2.50 200 2008 $6.00 150 $3.50 200 (a) Compute the growth rate of real GDP of Year 2007. (b) Compute the inflation rate of Year 2008, using GDP deflator as a measure of general price level. (c) Suppose that the CPI is calculated using a market basket consisting of 150 Sandwiches and measure of general

100 $2.00 180 2007 $5.00 120 $2.50 200 2008 $6.00 150 $3.50 200 (a) Compute the growth rate of real GDP of Year 2007. (b) Compute the inflation rate of Year 2008, using GDP deflator as a measure of general price level. (c) Suppose that the CPI is calculated using a market basket consisting of 150 Sandwiches and measure of general

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 4.9P

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(a) The Consumer Price Index (CPI) in December 1980 was 86.3. The Consumer Price Index as of December 2021 is 278.8. If the minimum wage would have increased at the same rate as the CPI from 1980 to 2021, what would the hourly minimum wage be in 2021? (b) Using the CPI, if the CPI in the base year 1982-1984 is 100 and the CPI in 1980 is 86.3, then what would the real minimum wage be in 1981? (c) Using the CPI, if the CPI in the base year 1982-1984 is 100 and the CPI in 2021 is 278.8, then what would t he real minimum wage be in 2021?
In year 3, the GDP deflator is 136. The inflation rate between year 2 and year 3 is Quantity Quantity Product Price (Year 1) Price (Year 2) (Year 1) (Year 2) Cars 50 25 100 30 Homes 10 50 15 60 Cheeseburgers 100 5 150 Cheese 50 2 75 3 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 18.0% b 15.0% C 13.3% d 28.84%
2019 2020Commodities Price Quantity Price QuantityA 3 30 5 25B 4 20 5 30C 20 18 25 25a) Using the data given above, compute the Nominal and Real GDP for 2019, and 2020. (The base year is 2019). b) Compute the inflation rate for the year 2020 by using the GDP deflator.
A consumer expenditure survey reports the following information on consumer spending: 2020 2021 Price Quantity Price Quantity Product (1) $10 7 $10 7 Product (2) $6 10 $8 12 Product (3) $12 5 $14 10 a) Using 2020 as the base year, by how much does a "cost of products" index increase between 2020 and 2021? b) Calculate the inflation rate between 2020 and 2021, using the CPI you calculated in (a)
Papayas Price (2015, base Quantity (2015, year) base year) $12 Watermelon $24 3.74% 1.95% 2.27% 1.24% 1600 400 Price (2019) $26 $18 Quantity (2019) 1300 1200 Consider the table above. Assume that there are only two goods produced in this economy: Papayas and watermelon. If the GDP deflator for 2018 was 122 then the rate of inflation between 2018 and 2019 was:
The average price of tuition and fees at private 4-year colleges and universities increased from $8,300 in 1991 to $23,000 in 2006. Calculate the relative change in price from 1991 to 2006 and compare it to the overall rate of inflation as measured by the Consumer Price Index. Average tuition and fees in private 4-year colleges and universities increased by ■%. (Round to the nearest integer as needed.) Average Annual Consumer Price Index (CPI) (1982- 1984=100) Year CPI Year CPI Year CPI 1976 56.9 1989 124.0 2001 177.1 1977 60.6 1990 130.7 2002 179.9 1978 65.2 1991 136.2 2003 184.0 1979 72.6 1992 140.3 2004 188.9 1980 82.4 1993 144.5 2005 1981 90.9 1994 148.2 2006 1982 96.5 1995 152.4 2007 1983 99.6 1996 156.9 1984 103.9 1997 160.5 2009 1985 107.6 1998 163.0 2010 109.6 1999 166.6 2011 1986 1987 113.6 2000 172.2 2012 1988 118.3 195.3 201.6 207.3 2008 215.3 214.5 218.1 224.9 229.6
(i)Given that 2019 is the base year, calculate the CPI for 2020 and determine the inflation rate between 2019 and 2020. (ii)Provide two reasons that the CPI may not reflect the actual cost of living of households accurately.
Shows the fruit prices that the typical college student purchased from 2001 to 2004. What is the amount spent each year on the “basket” of fruit with the quantities shown in column 2? 2. Construct the price index for a “fruit basket” in each year using 2003 as the base year. 3. Compute the inflation rate for fruit prices from 2001 to 2004.
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Calculating inflation using a simple price index: Please help me with this practise question.