Consider a simple economy that only produces: pencils, t-shirts, and bananas. Using the information in the table below, calculate the inflation rate for 2020, as measured by the consumer price index. Product Pencils T-shirts Bananas Quantity Base year price (2010) $2 $5 Price (2019) $3 $7 Price (2020) $3.50 $6.75 15 $1 $1.50 $1.75 O 1.9% O 1.1% O -1.1% 1.5% -1.9%

Consider a simple economy that only produces: pencils, t-shirts, and bananas. Using the information in the table below, calculate the inflation rate for 2020, as measured by the consumer price index. Product Pencils T-shirts Bananas Quantity Base year price (2010) $2 $5 Price (2019) $3 $7 Price (2020) $3.50 $6.75 15 $1 $1.50 $1.75 O 1.9% O 1.1% O -1.1% 1.5% -1.9%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose Cho is a cinephile and buys only movie tickets. Cho deposits $3,000 in a bank account that pays an annual nominal interest rate of 10%. Assume this interest rate is fixed—that is, it won't change over time. At the time of her deposit, a movie ticket is priced at $15.00. For each of the annual inflation rates given in the following table, first determine the new price of a movie ticket, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Cho's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest movie ticket. For example, if you find that the deposit will cover 20.7 movie tickets, you would round the purchasing power down to 20 movie tickets under the assumption that Cho will not buy seven-tenths of a movie ticket. Fill in the annual inflation chart Choices…
In 2019 and in 2020, consumers in Dexter purchased only books and pens. The prices and quantities for 2019 and 2020 are listed in the table. The reference base period for Dexter's CPI is 2019, and 2019 is also the year of the Consumer Expenditure Survey. What is the inflation rate in 2020? 2019 2020 Item Price Quantity Price Quantity Books $2 3 $4 5 Pens $8 8 $9 6 The inflation rate in 2020 is _______ percent. A. 5.0 B. 84.0 C. 120.0 D. 20.0
The price index was 140 in one year and 148.4 in the next year. What was the inflation rate? 8.4 percent O 6.0 percent O 2.4 percent O 4.2 percent
QUESTION 20 Table: The table below is for an imaginary economy of Orangeland where a typical consumer basket consists of 2 blankets and 10 coffees. Price of a Price of a Year Blanket Coffee 2017 $40 $3 2018 $45 $4 2019 $50 $5 Refer to Table. If the base year is 2018, then the economy's inflation rate in 2019 was O a. 15.38 percent. O b. 13.98 percent. Oc. 25.00 percent. O d. 20.00 percent.
The following table lists the per gallon prices of gas and milk for the months of April, May, and June. Assume that the typical consumer buys 60 gallons of gas and 4 gallons of milk each month, and that April is the base period. Month April May June Price of Gas (Dollars per gallon) 2.00 60.1% Refer to Table 25-3. What is the inflation rate for May? 67.2% -4.1% 10% 3.50 3.85 Price of Milk (Dollars per gallon) 3.50 3.52 3.58
In 2008 the price index was calculated at 137.9 with 2003 as the base year. In 2009 the price index increased to 148.7. What was the inflation from 2008-2009? O 7.8% O 7.3% O 10.8%
Price per Unit in Units Purchased 2008 2009 2010 Good A 5 $1.00 $1.50 $1.50 Good B 10 S2.00 $2.50 $3.00 Good C $4.00 $4.50 $5.00 If 2009 is the base year, the inflation rate between 2009 and 2010 is Select one. Oa. 9.4% Ob. 12.2% O c. 7.0% 13,9%
The monthly market basket for consumers consists of pizza, t-shirts, and rent. The table below shows market basket quantities and prices for the base year (Year 1) and in the following two years. Product Pizza T-Shirts Rent Base Year (Year 1) Quantity 10 3 1 The inflation rate between Year 1 and Year 2 is The inflation rate between Year 2 and Year 3 is Price in the Base Year $3.50 $10.00 $500.00 Price in Year 2 $4.38 $9.00 $550.00 Price in Year 3 $4.73 $10.50 $600.00 %. (Round both answers to one decimal place.) %.
Consider a simple economy that only produces: pencils, t-shirts, and bananas. Using the information in the table below, calculate the inflation rate for 2020, as measured by the consumer price index. Product Pencils T-shirts Bananas 1.9% 1.1% O-1.1% 1.5% O-1.9% Quantity 8 15 5 Base year price (2010) $2 $5 $1 Price (2019) $3 $7 $1.50 Price (2020) $3.50 $6.75 $1.75
The country of Panem produces only bow and arrow. Quantities and prices of these goods for the last several years are shown below. The base year is 2010. Prices and Quantities Price of Bow Quantity of Price of Quantity of Bow Year Arrow Arrow 2010 $10.00 200 $3.50 380 2011 $10.00 220 $5.00 400 2012 $11.00 250 $5.50 400 2013 $12.00 280 $6.50 440 What is the inflation rate in 2011? 8.79% 12.92% 16.67% None of the above
Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was S77: in 2013. the basket's cost was $82; and in 2014, the basket's cost was $90. The value of the CPI in 2014 was O a. 109.8 and the inflation rate was 9.8%. O b. 109.8 and the inflation rate was 16.9%. O c. 116.9 and the inflation rate was 9.8. O d. 116.9 and the inflation rate was 16.9%.
Henrique is a baseball fan and attends several games per season. His expenses per season are listed in the table below: |Year 1 |Year 2 5 Baseball Tickets Jersey Food Transport $500 $600 |$100 $150 $50 |$120 $150 $80 Calculate the inflation rate for Henrique's baseball season between year 1 and 2. 18.5% O0.18% 15.8% O1.6%