2. Compute inflation rates for the following cases.a. Calculate the one-period inflation rate for the US in 2022 given that the CPI in 2021 was271.0 and the CPI in 2022 was 292.7.b. Using the CPI data table from question 1, calculate the average annual inflation ratefrom 1970 to 1990. (Hint- this will use the constant growth formula from Lecture 3).c. Using the CPI data table from question 1, calculate the average annual inflation ratefrom 2000 to 2020. (Hint- this will use the constant growth formula from Lecture 3).

Answered: Image /qna-images/answer/5adee982-e86e-45c0-8b73-15b0e5699851.jpg

Answered: 2. Compute inflation rates for the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please don't use excel and show equations used.
Suppose that the nominal interst rate is 7 percent and the real interest rate is 5 percent. Instructions: round your answers to the nearest whole number. What is the inflation premium? (in percentage) Given the level of inflation, how many years would it take for the price level to double?
Suppose that people in the small island country of Mudotch produce and consume rice and beans as follows. Rice Beans Year Quantity Price Quantity Price YearO 20 5 15 7 Year1 25 7 17 10 Year2 35 9 20 16 1. Calculate the consumer price index (CPI) in each year using YearO as the base year. Show your work. 2. Using your CPI in (a), what is the inflation rate in Year1 and Year2? Show your work. 3. Calculate the GDP deflator in each year using YearO as the base year. Show your work. 4. Using your GDP deflator in (c), what is the inflation rate in Year1 and Year2? Show your work. 5. Is the inflation rate in Year2 the same in (b) and (d)? Explain why or why not.
Q1 An economy produces only 2 final goods: hamburgers and bicycles. In 2019, 1000 hamburgers were produced and sold at £8 per unit, while 200 bicycles were produced and sold at £200 per unit. In 2020, 800 hamburgers were produced and sold at £8.20 per unit, while 225 bicycles were produced and sold at £230 per unit. Using this information, the aggregate inflation rate for this economy between 2019 and 2020 is: досто + 40000 A. 56.9% B. 40.0% C. 42.2% D. 25.0%
5
1. Calculating inflation using a simple price index.
1. The index number representing the price level changes from 110 to 115 in 2019, and then from 115 to 120 in 2020. Since the index number increases by 5 this year, is five the inflation rate each year? Is the inflation rate the same each year?. NOTE: Explain and support the answer with calculations. 2. The total price of purchasing a basket of goods over four years is; year 1 - P940 year 2 - P970 year 3 - P1,000 year 4 - P1,070 Calculate two price indicates, one using year 1 as the base year (set equal to 100) and the other using the year 4 as the base year (set equal to 100). NOTE: Explain and support the answer with calculations.
7. Using you answer for Question 2, what will be the price per MMBtu of natural gas on June 30,2022 if this average inflation rate continues for the next 60 days (a total of 180 days from December 31,2021)? The nearest answer is:a. $8 b. $9 c. $10 d. $11 e. $12 Answer for 2 was 0.5%
Consider Table 2 above. Calculate the US inflation rate from 2002 to 2003. (round to two decimal places) A) 1.43% B) 2.28% C) 2.91% D) 3.01%
3. The index number representing the price level changes from 114 to 110 in one year. The inflation rate during the year is _____ percent. Round your answer to two digits to the right of the decimal (for example, 7.19) and do NOT include the word "percent" or the percent symbol in your answer. Negative rates are possible.
Table 24-1The following table pertains to Pieway, an economy in which the typical consumer's basket consists of 15 bushels of peaches and 10 bushels of pecans. Year Price of Peaches (Dollars per bushel) Price of Pecans (Dollars per bushel) Year 1 11 6 Year2 9 10 Refer to Table 24-1. If Year 1 is the base year, then the inflation rate in Year 2 was a. 4.4 percent. b. 10 percent. c. 1.04 percent. d. 23.5 percent.
Problem 1: Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 5 bars and the price is $3. In year 2, the quantity produced is 6 bars and the price is $4. In year 3, the quantity produced is 7 bars and the price is $5. Year 1 is the base year. •d. What is the inflation rate in year 2 and 3 related to previous one ?

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