2016 (base year) 2017 2018 Quantity Price Price Price Food 89 $2.35 $2.75 $3 Clothing 27 $12 $12.50 $12.50 Electronics 3 $252 $298 $304 Using the table above, what is the inflation rate from 2017 to 2018? a. 5.65% O b. 14.4% O c. 2.73% d. 9.67% 2016 (base year) 2017 2018 Quantity Price Price Price Food 89 $2.35 $2.75 $3 Clothing 27 $12 $12.50 $12.50 Electronics $252 $298 $304 Using the table above, suppose the government funds technological research in 2017 which decreases the price of popular electronics in . This event will not affect the CPI. Ob. The CPI will overestimate the true price level. O. The CPI will underestimate the true price level. O d. The CPI will stillacurately represent the true price level.

2016 (base year) 2017 2018 Quantity Price Price Price Food 89 $2.35 $2.75 $3 Clothing 27 $12 $12.50 $12.50 Electronics 3 $252 $298 $304 Using the table above, what is the inflation rate from 2017 to 2018? a. 5.65% O b. 14.4% O c. 2.73% d. 9.67% 2016 (base year) 2017 2018 Quantity Price Price Price Food 89 $2.35 $2.75 $3 Clothing 27 $12 $12.50 $12.50 Electronics $252 $298 $304 Using the table above, suppose the government funds technological research in 2017 which decreases the price of popular electronics in . This event will not affect the CPI. Ob. The CPI will overestimate the true price level. O. The CPI will underestimate the true price level. O d. The CPI will stillacurately represent the true price level.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1
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