An example of a nominal variable is the: Lütfen birini seçin: O a. quantity of goods produced in a year. O b. money supply. O c. real wage. O d. relative price of bread.
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- When economists speak of the CPI bias, they are referring to O A. the tendency for the CPI to understate price changes. B. the tendency for government officials to impose their values on the data. OC. the tendency for the CPI to understate inflation. O D. the tendency for the CPI to overstate price changes. OE. errors in measuring the prices used in the CPI.The the nominal interest rate, the is the quantity of money demanded. O a. more variable; smaller O b. lower; greater O c. lower; smaller O d. None of these because the nominal interest rate does not influence the quantity of money demanded.QUESTION 7 Keisha's income was $52,342 in 2011 and $64,983 in 2021. If the CPl rose from 225 to 271 between 2011 and 2021, which of the folowing is true? OA The purchasing power of Keisha's income remained constant between 2011 and 2021. O B. There was deflation between 2011 and 2021. OC The purchasing power of Keisha's income increased between 2011 and 2021. O D. The purchasing power of Keisha's income decreased between 2011 and 2021. O E. Keisha's income in 2011 was equivalent to her income in 2021 because she was able to purchase the same amount of goods and services.
- If the CPI was 228 at the end of 2013 and 236 at the end of 2014, what was the inflation rate in 2014? Select one: A. 8 percent B. 236 percent C. 4 percent O D. 3.4 percent O E. 3.5 percentThe output produced in bushels and the prices of this output ($/bushel) over the last three years for Seth Johnson, a farmer in Amarillo, Texas, are as follows: Year Output (bushels) Price ($/bushel) 2010 70,000 $3.20 2011 75,000 $2.90 2012 80,000 $3.50 Let the base year be 2011. What is the price index for 2012? Select one: O a. 1.094 O b. 0.829 O c. 1.207 O d. 0.914 e3. Suppose an economy has two years worth of data, years 1 and 2. Sup- pose there are also two goods, bread and corn. Suppose, in year one, 30 units of corn are sold at a price of 1 $ and 20 units of bread are sold at a price of 2 S. Suppose in year two, 60 units of corn are sold at a price of 1.5 $ and 80 units of bread are sold at a price of 4 $. Compute nominal GDP in both periods. Compute real GDP under both defini tions of a base year. Compute also a chain weighted real GDP series. For all three measures, compute the GDP deflator
- When does the amount of job-search unemployment increase? The amount of job-search unemployment increases when O A. the efficiency wage rate rises B. a demographic shock decreases the rate of entry into the working-age population O C. a prolonged structural slump occurs D. unemployment compensation decreases O O20) You know that a candy bar costs sixty OMR today.You also know the CPI for 1970 and the CPI for today.Which of the following would you use to compute the price of the candy bar in 1970 prices? Select one: O a. sixty OMR(today's CPI-1970 CPI) O b. sixty OMR(1970 CPI / today's CPI) O c. sixty OMR(1970 CPI-today's CPI) O d. sixty OMR(today's CPI / 1970 CPI)4. Real wages, nominal wages, and unexpected changes in the price level Deborah currently earns a wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of orange juice is $2.50 per gallon; in this case, Deborah's wage, in terms of the amount of orange juice she can buy with her paycheck, is gallons of orange juice per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on wage with those expectations in mind. If the price level turns out to be lower than expected, a worker's than both the worker and employer expected when they agreed to the wage. wage is a Deborah and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and…
- The reference base period is a period for which the is defined to equal Currently, the reference base period is 1982-1984. O A. inflation rate; 1 percent O B. PPI; 110 O C. interest rate; 1 percent O D. CPI; 100 Click to select your answer. DIIn 2020 and in 2021, consumers in Dexter consumed only books and pens. The prices and quantities for 2020 and 2021 are listed in the table. The reference base period for Dexter's CPI is 2020, and 2020 is also the year of the Consumer Expenditure Survey. Calculate the inflation rate in 2021. The inflation rate in 2021 is A. 121.7 B. 73.0 C. 21.7 D. 4.6 percent. ID Item Books Pens 2020 2021 Price Quantity Price Quantity 10 $5 7 $4 $5 5 8 $9Four different beverages are sold at a fast-food restaurant: soft drinks, tea, coffee, and bottled water. a. Explain why the type of beverage sold is an example of a categorical variable. b. Explain why the type of beverage sold is an example of a nominal scaled variable. a. Choose the correct answer below. O A. Type of beverage sold is a categorical variable because the values of the variable represent quantities. O B. Type of beverage sold is a categorical variable because the values of the variable arise from a measuring process. O C. Type of beverage sold is a categorical variable because the values of the variable arise from a counting process. O D. Type of beverage sold is a categorical variable because the values of the variable can only be placed into categories. b. Choose the correct answer below. O A. Type of beverage sold is a nominal scaled variable because the difference between measurements is a meaningful quantity but does not involve a true zero point. O B. Type of…