B. Determine the inflation rate of Country ABC using its CPI from 2020 and 2021.Price202110,0009,0006,0008,5007,00015,0005,00020,00010,00015,000PricePriceCommodity GroupWeight202020191. Food15%2. Agriculture3. Forestry4. Crude Oil and Petroleum Products5. Steel and Metal materials6. Chemicals7. Wood, wooden materials, paper8. Education9. Ore and other raw materials10. Other manufactured goods8,0007,5007,50010,00010,00010,0004,50030,00015,00011,00011,0008,00010,00014,00015,0008,5003,00028,00013,00010,00010%8%10%15%7%5%10%10%10%

Here we are Assuming the base Year is 2020 Formula Used to Calculate cost of Basket basket= Cost of…

B. Determine the inflation rate of Country ABC using its CPI from 2020 and 2021. Price Price 2020 Price Commodity Group Weight 2021 10,000 9,000 6,000 8,500 7,000 2019 1. Food 2. Agriculture 3. Forestry 4. Crude Oil and Petroleum Products 5. Steel and Metal materials 8,000 7,500 7,500 10,000 10,000 15% 11,000 10% 8,000 10,000 14,000 15,000 8 500 8% 10% 15% Chamiele 70/ 15. 000 10.000

B. Determine the inflation rate of Country ABC using its CPI from 2020 and 2021. Price Price 2020 Price Commodity Group Weight 2021 10,000 9,000 6,000 8,500 7,000 2019 1. Food 2. Agriculture 3. Forestry 4. Crude Oil and Petroleum Products 5. Steel and Metal materials 8,000 7,500 7,500 10,000 10,000 15% 11,000 10% 8,000 10,000 14,000 15,000 8 500 8% 10% 15% Chamiele 70/ 15. 000 10.000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 4 Between 2015 and 2016, the CPI of a small nation rose from 1.82 to 1.85. If household incomes rose by 3% during that period of time, which of the following is true? O The purchasing power of household income fell between 2015 and 2016. O The purchasing power of household income rose between 2015 and 2016. O The purchasing power of household income remained constant between 2015 and 2016. O The CPI cannot be used to determine how the purchasing power of household income changes over time.
Year CPI 2010 189 2011 211 Consider the data in the table above of the consumer price index for 2010 and 2011, using 1980 as the base year. The inflation rate for 2011 is equal to 10.8 percent 22.0 percent 8.96 percent 11.6 percent 10.4 percent
An inflation rate of 2% in the USA (calculated using the Consumer Price Index) means that: both domestic and foreign products consumed in the USA have become more expensive by 2% compared to last year. b. only domestic products consumed in the USA have become more expensive by 2% compared to last year. only domestic products consumed in the USA have become more expensive by 2% compared to the base year. d. the GDP of the economy is growing at 2%.
Using the data in the table below, calculate the CPI and the inflation rate in each year, using 2013 as a base year. Instructions: Round your answers to one decimal place. Year Cost of Basket ($) CPI Inflation Rate 2013 18,000 2014 21,500 2015 22,500 2016 26,150 2017 28,850 2018 32,500
Price Quantity Year (Dollars per sticker) (Number of stickers) 2020 3 210 2021 2 150 2022 3 125 Year 2020 2021 Use the information from the preceding table to fill in the following table. 2022 Stickers From 2021 to 2022, nominal GDP Nominal GDP Real GDP (Dollars) (Base year 2020, dollars) GDP Deflator The inflation rate in 2022 was Price (Dollars per paper plate) and real GDP 4 4 Paper plates 4 Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of paper plates) 180 Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. O Real GDP is not influenced by price changes, but nominal GDP is. O Real GDP includes the value of exports, but nominal GDP does not. 200 180
The following table shows the typical market basket consumed in an economy as well as data on price for years 2001 to 2003. Use this table to calculate the inflation rate between 2001 and 2002. 2003 is the base year. Price in year Price in year Price in Year Items Quantities 2001 2002 2003 Pizza $10 $20 $0.50 $12 $25 $0.55 $11 $26 $1 10 T-shirts 10 Candy 100
Now you see what the BLS economist do, except with a more complex basket of goods. Now try to construct an index and determine the inflation rate on your own. The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the “basket” of fruit with the quantities shown in column 2? (5 points) Items Qty. 2001 2002 2003 2004 Price Amount Spent Price Amount Spent Price Amount Spent Price Amount Spent Apples 10 $0.50 $0.75 $0.85 $0.88 Bananas 12 $0.20 $0.25 $0.25 $0.29 Grapes 2 $0.65 $0.70 $0.90 $0.95 Raspberries 1 $2.00 1.9 2.05 2.13 $2.13 Total Construct the price index for a “fruit basket” in each year using 2003 as the base year. (5 points) Compute the inflation rate…
The following table shows the annual inflation rate (the GDP deflator) of Japan, the UK, China, and South Sudan in the period 1996-2015 (Source World Bank 1996-2000 2001-2005 2006-2010 2011-2015 -1.9% -0.9% Japan UK -0.5% 1.6% 2.1% 1.7% 1.8% 1.8% China 8.1% 2.4% 2.1% 0.8% South Sudan 54.1% 6.5% 0.6% -18.7% Based on this information, which of the following statements is correct? O In Sudan Price level has always decreased between 1996 and 2015 The general price level decreased in China between 1996 and 2015 O China experienced disinflation between 1996 and 2015 O in the UK, the price of goods and services remained stable between 2001 and 2015
2. The inflation-unemployment relationship The following graph shows the combinations of unemployment and inflation that existed in the United States for selected years between 1961 and 1969. Click on any blue point (circle symbol) on the graph to get its exact coordinates. You can also use the black point (cross symbol) to find the coordinates of other points along the curve. (Note: You will not be graded for any adjustments made to the graph.) INFLATION RATE (Percent) 1989 5.0 4.5 1988 4.0 3.5 1967 3:0 2.5 2.0 1965 1964 1.5 1983 1961 1.0 0.5 0 3.0 3.5 40 45 5.0 5.5 6.0 8.5 7.0 UNEMPLOYMENT RATE (Percent) What happened to the inflation rate between 1965 and 1969? The inflation rate decreased from 1.9% to 1.5%. The inflation rate increased by 3 percentage points. The inflation rate decreased by 2 percentage points. O The inflation rate increased from 2.9% to 4.3%. ? If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been:
Here are values of the CPI (multiplied by 100) for each year from 2000 to 2010. For each year beginning with 2001, calculate the rate of inflation from the previous year. Year CPI Inflation Rate (%) 2000 133.7 2001 139.2 2002 143.3 2003 147.5 2004 151.2 2005 155.4 2006 159.9 2007 163.5 2008 166 2009 169.6 2010 175.2
Calculative an Inflation Rate. A country reports a price index of 55 in 2005 and 60 in 2006. What is the inflation rate between 2005 and 2006? Answer as a percentage and round to two decimal places (xx.xx%).
Question 2 Part (a) Refer to the table below for a very simple economy producing three goods: education, pizzas and cars. Steel panels are needed for car production, cheese is necessary for making pizzas and projectors are used for educational service. Product Steel panels Education Cars Cheese Pizzas Projectors Quantity 40 400 400 2500 2500 4000 2017 Price $5000 $1000 $10000 $1.50 $9.00 $2000 Quantity 50 450 500 3500 3500 5000 2022 Price $6000 $1100 $12000 $1.50 $12.00 $3000 What is the nominal GDP for the economy in 2022? What was the nominal GDP in 2017? What is the real GDP in 2022 using 2017 prices as base year prices? What is the overall real GDP growth rate between 2022 and 2017? Part (b) Assume for an economy, there are 11.5 million people employed, unemployment rate is 5.2%, labor force participation rate is 64%, number of defence force personnel