20-14 Nominal Average Hourly Earnings $2.65 Year CPI (1982-1984 = 1.00) %3! 0.32 22.59 2.19 ple above reports the nominal average hourly earnings in private industry and the consumer price index for o Table 20-14. The real average hourly earnings for 1965 in 1982-1984 dollars equal 28. 49. 28. 5.45.
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- Table 9-5 Year CPI 2017 201 2018 210 Refer to Table 9-5. Consider the following values of the consumer price index for 2017 and 2018. The inflation rate for 2018 was equal to O 4.5 percent. O 8.0 percent. O 215 percent. O 3.9 percent.Suppose you lent money to a friend a few years ago at a nominal interest rate of 6%. At the time ot he loan, you expected the annual inflation rate to be 2%, but the actual annual inflation rate was 1.2%. When the loan originated, you expected to earn a real return of but due to unexpected disinflation, you earned an actual real return of A. 2%; 1.2% OB. 4.8%; 6% C. 6%; 4.8% D. 4%; 4.8%Table 6.2 Year CPI 150 2 154 3. 152 4 156 5. 160 Refer to Table 6.2. If a worker earned $40,000 years ago when the CPI was 130, what is the minimum salary he must earn in year 4 to "more than keep up with inflation"? O $49.230.77 O $48,000.00 O $46,769.23 O $46.153.85
- ning Time: 09 minutes, 39 seconds. tion Completion Status: O E. frictional, cyclical, and structural unemployment. QUESTION 6 Suppose an individual earned a salary of $12,000 in 1970. If the CPI was 38.8 in 1970 and 258.8 in 2020, then the value of this individual's salary in 2020 dollars is approximately O A. $80,041. O B. $71,456. OC. 593,381. O D.$1,799. O E. $60,398. QUESTION7 If real GDP remains constant we know for sure that O A. output has declined. O B. output has risen but prices have remained constant. O C. prices have remained constant. O D. output has remained constant. O E. output has risen. QUESTION 8 All of the following factors have contributed to the rapid expansion of international trade since the 1980s, except for O A. progress in communications. O B. trade agreements. Click Save and Submit to save and submit. Click Save All Answers to save all answers.Calculate the inflation rate experienced in 2014 and 2015 based on the CPI for each year below: Year CPI (as of December 31 of the year) Inflation rate (%) 2013 124.5 Not applicable for 2013 2014 125.2 ? 2015 127.5 ?In 2019 and in 2020, consumers in Dexter purchased only books and pens. The prices and quantities for 2019 and 2020 are listed in the table. The reference base period for Dexter's CPI is 2019, and 2019 is also the year of the Consumer Expenditure Survey. What is the inflation rate in 2020? 2019 2020 Item Price Quantity Price Quantity Books $2 3 $4 5 Pens $8 8 $9 6 The inflation rate in 2020 is _______ percent. A. 5.0 B. 84.0 C. 120.0 D. 20.0
- Taylor's nominal income is $50,000 per year in Acity where the cost-of-living index is 200. Taylor is considering accepting a similar job and relocating to Becity where the cost-of- living index is 210. For Taylor's income to have the same purchasing power in Becity as $50,000 has in Acity, then Taylor's nominal income per year in Becity must equal: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $50,000. b $52,100. C $52,500. d. $55,000.To convert the original earnings of Casper, NMiller, and Pavin, use the formula for converting dollar figures from an earlier era into year 2016 U.S. dollars. Using those figures, Ai in the following table, making sure to round your responses to the nearest U.S. dollar. Nominal Winnings U.S. CPI (1983- 100) Winnings in 2016 Dollars Year Golfer (Dollars) 1968 Billy Casper 205,169 34.8 1974 Johnny Miller 353,022 49.3 1991 Corey Pavin 979,430 136.2 2016 Dustin Johnson 9,365,185 240.0 9,365,165 True or False: According to the previous table, the golfer with the highest PGA winnings in nominal dollars is not the same as the golfer with the highest PGA winnings after adjusting for inflation, O True O Falsee 3 The cost of each item in the basket and the total cost of the basket are shown for 2019. Perform these same calculations for 2020 and 2021, and enter the results in the following table. Notebooks Calculators Large coffees Energy drinks Textbooks Total cost Price index Quantity in Basket 10 1 150 50 10 5 5 Price (Dollars) 5 100 1 2 100 5 5 Suppose the base year for this price index is 2019. 2019 Between 2019 and 2020, the CSPI increased by Cost (Dollars) 50 100 150 100 1,000 1,400 100 Price (Dollars) 7 110 1 3 120 2020 5 5 Cost (Dollars) I 70 110 In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Price (Dollars) 11 140 1 4 150 5 5 2021 %. Between 2020 and 2021, the CSPI increased by Cost (Dollars) %. 110 140 Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. The quality of textbooks increased dramatically from 2019 to 2021,…
- 2. Complete the following table. Assume the real interest rate remains constant at 3%. (CPI numbers are for the end of each year.) Year CPI 1 120 2 3 132 Inflation Rate Nominal Wage Real Wage Nominal Interest Rate XXXX XXXX XXXX XXXX 10% 5% $8.00 $7.27 $10.00 13%A basket of products and servioes cost $400 in the base year. If the Consumer Price Index (CPI) in the current year is 250, then the cost of the basket of products and services in the current year is O A. $150. OB. $650. OC. $1,400. O D. $1,000.In 2008 the price index was calculated at 137.9 with 2003 as the base year. In 2009 the price index increased to 148.7. What was the inflation from 2008-2009? O 7.8% O 7.3% O 10.8%