B4: Interpret these Graphs: Name the top 2 items causing inflation per grap Inflation continues to rise. • Main drivers: food, electricity, transport. Food, non-alcoholic beverages Alcoholic beverages Clothing Housing, water, electricity, gas Household furnishings, equipment Health Transport Info and communication Recreation Education Restaurants, hotels Financial services % kontribusyon sa pangkalahatang 8 - -

B4: Interpret these Graphs: Name the top 2 items causing inflation per grap Inflation continues to rise. • Main drivers: food, electricity, transport. Food, non-alcoholic beverages Alcoholic beverages Clothing Housing, water, electricity, gas Household furnishings, equipment Health Transport Info and communication Recreation Education Restaurants, hotels Financial services % kontribusyon sa pangkalahatang 8 - -

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Table 24-1The following table pertains to Pieway, an economy in which the typical consumer's basket consists of 15 bushels of peaches and 10 bushels of pecans. Year Price of Peaches (Dollars per bushel) Price of Pecans (Dollars per bushel) Year 1 11 6 Year2 9 10 Refer to Table 24-1. If Year 1 is the base year, then the inflation rate in Year 2 was a. 4.4 percent. b. 10 percent. c. 1.04 percent. d. 23.5 percent.
B3: Interpret these Graphs: Name the top 2 items causing inflation per graph. Inflation continues to rise. • Main drivers of transport inflation: operation of private vehicles- fuels, parts, etc. (and increasingly, passenger transport services). Purchase of vechicles Operation of personal transport equipment (parts, fuel) Passenger transport services Transport services of goods 20 18 14 12 10 8 2019m1 2019m3 2019m5 2019m7 2019m9 2019m11 2020m1 2020m3 2020m5 2020m7 2020m9 2020m11 2021m1 2021m3 Source: Author's computations using PSA data. Graph by JC Punongbayan, PhD swizoz 2021m7 2021m9 2021m11 2022m1 2022m3 2022m5 2022m7 2022m9 LUGO
Calculating and categorizing inflation This table indicates the historical level of the Consumer Price Index (CPI) for the United States for 2006,2007, and 2008. Complete the table by (1) selecting the inflation rates for 2007 and 2008, and (2) indicating for each year whether there has been inflation, deflation, or hyperinflation. Year CPI Inflation rate Change in Price Level 2006 201.6 2007 207.3 2007 215.3 What rates of inflation for 2009 would be consistent with disinflation between 2008 and 2009? Check all that apply. 13.9% 3.7% 3.9% 3.8% What rates of inflation for 2009 would be consistent with hyperinflation ? Check all that apply. 100.0 % -3.9% 120.0% 15.0%
The table below shows the annual change in the average nominal wage and inflation rate since 2008. a. Compute the percentage change in real income for each year shown in the table. Instructions: In part a, round your answers to two decimal places. In parts b and c, enter your answers as a whole number. If entering a negative number, include a minus sign. Percentage Changes in Nominal Income and Prices Year 2008 2009 2010 2011 2012 2013 Annual Inflation Rate (percent) 3.92% -0.36 1.66 3.24 2.11 1.48 Annual Nominal Wage Growth (percent) 0.34% -1.24 -0.76 1.4 2.76 2.28 Annual Real Wage Growth (percent) (0.39) x % (0.88) ♥ 2.42 x 9.87 x b. Of the years listed above, the paycheck of the average worker declined in 2 c. Of the years listed above, the purchasing power of the average worker declined in of the six years. 4 of the six years. d. The average real income of households can increase whether the nominal wage increases or decreases
Annual Rate of Inflation (%) 12 C3 C₂ C₁ 160 B4 B3 B₂ B₁ 567 8 9 Unemployment Rate (%) Refer to the above graph. The long-run relationship between the rate of inflation and the unemployment rate is represented by: A line connecting points B₁ and C₁ The zigzag line, B₁C₁B₂C₂B3C3B4 A line connecting points B₁B₂B3B4 A line connecting points C₁C₂C3
Year Price of Pizza Price of Beer 2010 $10 $15 2011 $12 $16 2012 $14 $17 Table 2. Let 2010 be the base yearUse the following market basket: 100 pizzas 300 cases of beerRefer to Table 2. What is the rate of inflation between 2010 and 2011? Question 23 options: a) 12% b) 5% c) 100% d) 9%
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…
B1: Interpret these Graphs: Name the top 2 items causing inflation per graph. Inflation continues to rise. • Main drivers of utility inflation: electricity (and increasingly, rent). Rent Dwelling maintenance, repair Water supply Electricity Gas Liquid fuels Solid fuels % kontribusyon sa utilities inflation 2019m1 2019m3 TTI 2019m5 2019m7 2019m9 2019m11 2020m1 2020m3 2020m5 2020m7 2020m9 2020m11 2021m1 2021m3 Source: Author's computations using PSA data. Graph by JC Punongbayan, PhD 2021m5 2021m7 2021m9 2021m11 2022m1 2022m3 2022m5 2022m7 2022m9 1000 Panelist JC Punongb...
↑ Inflation Measure WPI Headline WPI Headline 1 WPI Food 0.34 WPI Core 0.82 CPI Headline 0.32 CPI Food 0.41 CPI Core -0.04 Inflation Measure WPI Headline WPI Food WPI Core CPI Headline CPI Food CPI Core WPI Headline 1 0.55 0.93 0.58" 0.34" 0.77" A: 1997 02-2008 04 WPI Food WPI Core CPI Headline CPI Food CPI Core 1 0.20 0.90 0.93 0.63 1 0.09 0.26 -0.32 B: 2009 01-2019 04 WPI Food WPI Core CPI Headline CPI Food CPI Core 1 0.27 0.91" 0.89 0.74* 1 0.39 0.10 0.67* Revisit Later 1 0.94 0.81 1 0.92* 0.86* 1 0.58 1 0.61* 1 1 Table 2: Correlation matrix of inflation measures (Please ignore the meaning of the * sign) Q. Based on Table 2, we can draw the conclusion that- Select an option & Clear Response The direction of movement between CPI core and WPI headline is not necessarily the same across the years Post 2008, WPI core and WPI headline have moved in opposite directions Prior to 2009, the correlation between WPI core and WPI headline has been very weak Post 2008, CPI core and WPI headline…
A price index for a basket of goods over four years was calculated to be: 2014 = 92, • 2015 =97, • 2016=100, • 2017=107. Calculate the inflation rate for each year so that you will enter: Blank #1 = Inflation Rate for 2015 Blank #2 = Inflation Rate for 2016 • Blank #3 = Inflation Rate for 2017 What is the base year in this scenario? • Blank #4 = Base year for this basket %3D Round to two decimal places Blank # 1 Blank # 2 Blank # 3 Blank # 4
The table below shows the annual change in the average nominal wage and inflation rate since 2008. a. Compute the percentage change in real income for each year shown in the table. Instructions: In part a, round your answers to two decimal places. In parts b and c, enter your answers as a whole number. If entering a negative number, include a minus sign. Percentage Changes in Nominal Income and Prices Year 2008 2009 2010 2011 2012 2013 Annual Inflation Rate (percent) 3.78% -0.39 1.6 3.09 2.02 1.42 Annual Nominal Wage Growth (percent) 0.31% -1.1 -0.69 1.27 2.46 2.07 Annual Real Wage Growth (percent) b. Of the years listed above, the paycheck of the average worker declined in c. Of the years listed above, the purchasing power of the average worker declined in of the six years. d. The average real income of households can increase whether the nominal wage increases or decreases of the six years.
If P is the price index. How can you estimate the inflation rate? (Multiple answers may be right.) Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Inflationt-Pt-Pt-1/Pt Inflation=(Pt-Pt-1)/Pt-1 Inflation=Pt-Pt-1-1 Inflation=Pt/Pt-1-1