Choose the statement that is correct. O A. The main source of bias in the CPI arises from frequently updating the CPl market basket. B. The bias in the CPI gives workers with wage contracts linked to the CPI less real income than the firm intended. C. Close to a third of federal government outlays are linked directly to the CPI O D. The bias in the CPI decreases government outlays.

Choose the statement that is correct. O A. The main source of bias in the CPI arises from frequently updating the CPl market basket. B. The bias in the CPI gives workers with wage contracts linked to the CPI less real income than the firm intended. C. Close to a third of federal government outlays are linked directly to the CPI O D. The bias in the CPI decreases government outlays.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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13. In 2018 your annual salary was $54,370 per year and the CPI was 133.4. In 2022 your annual salary was $59,140 and the CPI was 151.2. a. What should your annual salary have been in 2022 if your 2018 annual salary increased at the rate of inflation from 2018 to 2022? Round your answer to the nearest dollar. b. By what percent was your actual 2022 salary above or below your inflation adjusted salary from part (a)? You must specifically state whether it was above or below the inflation adjusted salary. (answer as a % to 2 decimals)
Using the table below and 2000 as the base year, choose the statement holding true Year 2000 2022 Grains Movie shows Р 1 5 Q 500 300 Р 1.05 10.50 Q 590 210 2021 Р 1 10 Select one: O a The CPI in 2022 is equal to 183 75% and the CPI in 2021 is equal to 175% The inflation rate in 2022 is equal to 5% Ob The CPI in 2022 is equal to 172.25% and the CPI in 2021 is equal to 161.4%. The inflation rate in 2022 is equal to 6.72% c. The CPI in 2022 is equal to 172.25% and the CPI in 2021 is equal to 162.5% The inflation rate in 2022 is equal to 6% Od. The CPI in 2022 is equal to 161.4% and the CPI in 2021 is equal to 148.57%. The inflation rate in 2022 is equal to 4.13% 600 200
The external links are highlighted in black you just need to copy and paste it Calculate the inflation rate for the following time periods (use the CPI data on WWW. BLS.GOV) or Simply click on this link: https://data.bls.gov/pdq/SurveyOutputServlet?series_id=CUURA421SA0,CUUSA421SA0 and select 1959 to 1999 the hit go. Then use the formula Change in CPI or inflation = (CPI current year – CPI base year/CPI base year) x 100. You will need five answers for a. to e. 1959 – 1963 1964 – 1969 1970 – 1979 1980 – 1989 1990 – 1999 What is the difference between a & b? Why? Compare inflation for 1970s and 1980s. Any improvement in the 1990s? What might be one reason for the improvement?
Currently, the Bureau of Labor Statistics does not include homemakers in its employment and labor force totals. What would happen to the unemployment rate and the labor force participation rate if homemakers were included in these numbers? OA. Both the unemployment rate and the labor force participation rate would increase. OB. The unemployment rate would increase and the labor force participation rate would decrease, OC. Both the unemployment rato and the labor force participation rate would decrease. OD. The unemployment rate would decrease and the labor force participation rate would increase.
* Suppose OPEC succeeds in raising world oil prices by 300 percent. This price increase causes inventors to look at alternative sources of fuel for internal-combustion engines. A hydrogen powered engine is developed which is cheaper to operate than gasoline engines. Which proble in the construction of the CPI does this situation represent? a. Introduction of new goods and unmeasured quality change b. Substitution bias and unmeasured quality change c. Substitution bias and introduction of new goods d. Income bias and substitution bias
Use the following to answer questions 19 - 21: 2005 is the CPI base year and the 2006 CPI = 110 If you receive a pay raise of 5% , which of the following is correct O a 5% increase in the nominal wage a 5% increase in the real wage a 5% decrease in the nominal wage no wage change
Homework (Ch 11) Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 10 2 20 1. Calculators 50 50 54 75 Large coffees 200 200 1 Energy drinks 100 200 4 Textbooks 10 100 1,000 120 150 Total cost 1,470 Price index 100 Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by Between 2018 and 2019, the CSPI increased by 15…
Problem 10-07 According to the following data, between 2000 and 2021, by what percentage did Average hourly wage CPI Instructions: Round your responses to the nearest whole number. a. nominal wages increase? % b. consumer prices increase? >>> % c. Did real wages increase? 2000 $ 14 170 Yes No O They remained constant. 2021 $ 30 262
Choose the correct statement. A. The PCEPI excluding food and energy fluctuates more than the PCEPI and the CPI. B. The CPI and the C-CPI can be used to measure inflation. The PCEPI cannot be used to measure inflation. C. The PCEPI uses current quantities so it avoids the sources of bias in the CPI. D. The CPI, C-CPI, and the PCEPI do not move together.
Commodity substitution bias _______ when the CPI is calculated in 2021 using the 2020 market basket because _______. A. exists; over time preferences change and people prefer to eat pizza rather than pasta B. does not exist; pizza and pasta are not substitutes C. exists; people switch from the relatively more expensive pasta to the relatively less expensive pizza D. does not exist; the CPI market basket is updated frequently to eliminate substitution bias
question C,D,E,F
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