6. The official inflation rate likely overstates the perceived inflation rate by consumers because Some goods that become more expensive also experience quality improvements. b. People stop buying certain goods if they become too expensive. People switch to substitutes/ alternatives if certain goods become too expensive. d. All of the above. 7. People who have given up looking for work are classified as a. Unemployed. b. Discouraged workers. c. Students. d. Temporarily unemployed. In recent years there has been a steady transition from Coal to Green Energy. This trend implies frictional unemployment as some workers switch industries but also a substantial 8. amount of ... a. Seasonal Unemployment c. Cyclical Unemployment c. Structural Unemployment d. All of the above.

6. The official inflation rate likely overstates the perceived inflation rate by consumers because Some goods that become more expensive also experience quality improvements. b. People stop buying certain goods if they become too expensive. People switch to substitutes/ alternatives if certain goods become too expensive. d. All of the above. 7. People who have given up looking for work are classified as a. Unemployed. b. Discouraged workers. c. Students. d. Temporarily unemployed. In recent years there has been a steady transition from Coal to Green Energy. This trend implies frictional unemployment as some workers switch industries but also a substantial 8. amount of ... a. Seasonal Unemployment c. Cyclical Unemployment c. Structural Unemployment d. All of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose for Candyland the cost of a CPI basket is worth $500 in 2016, and the same basket is worth $600 in 2017. Answer the following questions a. Using 2016 as the base year, calculate the CPIs of 2016 and 2017, respectively. Then calculate the inflation rate between 2016 and 2017. Show steps. b. If a computer costs $1500 in 2016, using the CPIs you calculated in (a), what is the cost of this computer if measured in 2017 dollars? Show steps. Hint: the same computer should have the same real values in both years.
3
Which of the following is an example of a nominal variable? A.) Output B.) Employment C.) Prices D.) Physical capital
For each of the following, circle whether the person or organization described is helped, hurt, or not affected by inflation. Then, explain your answer. 1. Banks that extend fixed-rate loans. Helped Hurt Unaffected 2. Farmers buy machinery using a fixed-rate loan. Helped Hurt Unaffected 3. Your family buys a new home using an adjustable-rate mortgage. Helped Hurt Unaffected 4. You have a savings account paying a fixed-rate of interest. Helped Hurt Unaffected 5. A retired couple lives entirely on fixed pensions from former employers. Helped Hurt Unaffected 6. You work a job that does not offer you a COLA. Helped Hurt Unaffected 7. Banks that offer adjustable-rate loans. Helped Hurt Unaffected
Suppose the consumer price index (CPI) in 1983 was 100. In 1994, the CPI was 150. In 1994, a bank teller's annual salary was $22,000. The same job paid $16,000 in 1983. After adjusting for inflation, the real salary of bank tellers a. Increased by more than the rate of inflation b. Decreased between 1983 and 1994 c. Remained the same between 1983 and 1994 d. Increased between 1983 and 1994 e. The inflation rate was around 33.3% between 1983 and 1994.
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a) Explain the difference between calculation of inflation through CPI and through the GDP deflator. Hint: think about which type of goods are considered for calculating inflation in each case.
# In an economy, the nominal interest rate is 9% and inflation is 7%. Raj is thinking to giving some money as loan to his friend. Would it be beneficial for Raj to lend at this very moment.
question C,D,E,F
C. Employment and Unemployment Rate 1. Calculate for the employment and unemployment rate when the total population of a country is 777million, 377 million workers are unemployed and 225 million are employed. Employment Rate b. Unemployment Rate 2. The total population of a country is 985 million, 640 million workers are unemployed & 265 million are employed. Calculate: a. Employment Rate b. Unemployment Rate 3. Suppose an economy has a population of 65million people. There are 10 million people who are unemployed, and 45 million people are employed. What is the unemployment rate? Employment Rate b. Unemployment Rate
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