The first two columns of the table below describe the goods and quantities included in your currentmonthly consumption. Suppose you have been able to use all of your monthly income (no savings) toafford this level of fixed consumption over the last few years despite the increase in the cost of living.• Round all expenditure calculations to the nearest dollar.• Round CPI and inflation (expressed as an integer) to 1 decimal place.• Carry your rounded figures throughout the rest of the problem.201820192020BasketPricesPricesItemPricesQuantitiesMeal Kit Delivery$106.008$107.00 $110.25$48.25$50.00$46.00$53.00Water16Hydro Electricity14$56.90$58.75Dry cleaning$62.0010$64.75$68.00Entertainment$26.0017$28.75$32.80Part (a): Using the quantities specified in the 2018 basket of goods, calculate the CPI for 2018, 2019 and2020.Part (b): What is the inflation rate between 2018 and 2019? 2019 and 2020?Part (c): Suppose inflation is expected to remain constant for future years. At the end of December 2020,your boss offers you the opportunity to start a new position in January 2021 that pays a monthly salary of$3,947.92 and increases by 5.5% every year.Should you leave your current job and accept the new offer? Use 1- 2 sentences to explain your answer.

e table below describe the goods and quantities included in your current pose you have been able to use all of your monthly income (no savings) to nsumption over the last few years despite the increase in the cost of living. calculations to the nearest dollar. (expressed as an integer) to 1 decimal place. ures throughout the rest of the problem. 2018 2019 2020 Basket Prices Prices Prices Quantities $106.00 8. $107.00 $110.25 $46.00 16 $48.25 $50.00 $53.00 14 $56.90 $58.75 $62.00 10 $64.75 $68.00 $26.00 17 $28.75 $32.80 es specified in the 2018 basket of goods, calculate the CPI for 2018, 2019 and on rate between 2018 and 2019? 2019 and 2020? is expected to remain constant for future years. At the end of December 2020,

e table below describe the goods and quantities included in your current pose you have been able to use all of your monthly income (no savings) to nsumption over the last few years despite the increase in the cost of living. calculations to the nearest dollar. (expressed as an integer) to 1 decimal place. ures throughout the rest of the problem. 2018 2019 2020 Basket Prices Prices Prices Quantities $106.00 8. $107.00 $110.25 $46.00 16 $48.25 $50.00 $53.00 14 $56.90 $58.75 $62.00 10 $64.75 $68.00 $26.00 17 $28.75 $32.80 es specified in the 2018 basket of goods, calculate the CPI for 2018, 2019 and on rate between 2018 and 2019? 2019 and 2020? is expected to remain constant for future years. At the end of December 2020,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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