he real wage rate measures: the ability to purchase necessities vs. luxury goods the ability to purchase "normal" vs. "inferior" goods how economic decisions are influenced by the government the quality of goods and services that can be bought with nominal wages the quantity of goods and services that can be bought with nominal wages

he real wage rate measures: the ability to purchase necessities vs. luxury goods the ability to purchase "normal" vs. "inferior" goods how economic decisions are influenced by the government the quality of goods and services that can be bought with nominal wages the quantity of goods and services that can be bought with nominal wages

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter7: Inflation

Section: Chapter Questions

Problem 2SQ

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Refer to the figure below. Insurance and pensions 11.9% Item a. Entertainment b. Transportation c. Clothing Housing 32.8% Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey (2018 date). Entertainment 5,3% Item Weight 0.053 0.159 0.03 Transportation 15.9% Health care 8.1% Use the item weights in the figure to determine the percentage change in the CPI that would result from a(n) a. 20 percent increase in entertainment prices. b. 8 percent decrease in transportation costs. c. doubling of clothing prices. (Note: Review the table titled "Computing Changes in the CPI" in your text for assistance.) Instructions: Enter your responses as a percentage rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Price Change 20% -8% 100% Food 12.9% Clothing 3.0% Impact on CPI (Inflation Effect) Miscellaneous 10.1%
If prices of goods and services (CPI) rises by 10% and also nominal wages rise by 10% tax revenues fall GDP rises real wages remain constant the unemployment rate falls
Examine the following information as reported for the foods below in the years 2010 and 2019. 2010 2019 Item Price (S) Quantity Price (S) Quantity Eggs (one dozen) $2.75 27 $3.37 40 Chicken (500 g) $3.20 11 $3.57 7 Bread (675 g) $2.28 18 $2.83 23 a) Compute a simple price index for each of the items, using the year 2010 as the base year. Enter them in the same order as above: Eggs, Chicken, Bread. Round answers to 1 decimal. b) Compute a simple aggregate price index. Use 2010 as the base period. Round to one decimal place. c) Compute the Laspeyres price index for 2019 using 2010 as the base year. Round to one decimal place. d) Determine a value index for 2019, using 2010 as the base year. Round to one decimal place.
The consumer price index (CPI) a. is the price of metals, lumber, and raw materials. b. is a quarterly index that producers receive for their finished goods. c. is a monthly index that tracks the prices paid by consumers. d. measures prices paid during periods of deflation. e. measures increases or decreases in the level of worker performance.
Full employment means that all of working-age population can be classified as employed all of the labor force is classified as employed there is no unemployment resulting from a recession there is no unemployment as the result of seasonal patterns
Insurance and pensions 11.9% Item a. Entertainment b. Transportation c. Clothing Housing 32.8% Entertainment 5.3% Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey (2018 data). 0.053 0.159 0.03 Transportation 15.9% Health care 8.1% Use the item weights in the figure to determine the percentage change in the CPI that would result from a(n) a. 20 percent increase in entertainment prices. b. 8 percent decrease in transportation costs. c. doubling of clothing prices. (Note: Review the table titled "Computing Changes in the CPI" in your text for assistance.) Instructions: Enter your responses as a percentage rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Item Weight Price Change (Inflation Effect) Impact on CPI 20% -8% 100% Food 12.9% Clothing 3.0% Miscellaneous 10.1%
Answer all questions.
The consumer price index (CPI) rose from 105.9 to 113.4, while Helen's net salary decreased 7.0 %. Calculate the relative real change in Helen's salary (purchasing power) as percentage.
An economy has 100 people divided among the following groups: 25 have full-time jobs, 20 have one part-time job, 5 have two part-time jobs, 10 would like to work and are looking for jobs, 10 would like to work but are so discouraged they have given up looking, 10 are running their own businesses, 10 are retired, and 10 are small children. Calculate the labor force and the labor-force participation rate. Calculate the number of unemployed and the unemployment rate. Calculate total employment in two ways: as measured by the household survey and as measured by the establishment survey.
The price of gold (end-of-year closing price in dollars per troy ounce) is shown in the table below. The CPI index for the given years is shown to the right. Complete parts (a) through (c) below. Average Annual Consumer Price Index (CPI) Year 1986 1996 2006 2016 Year 1986 1996 2006 2016 CPI 109.6 156.9 201.6 240.0 Price $281 $434 $896 $1118 a. The prices shown in the table above are not adjusted for inflation. Revise the above table to express all prices in terms of 2016 dollars. Year 1986 1996 2006 2016 2016 2$ $4 Price (Round to the nearest cent as needed.)
The New York Times newspaper cost $0.15 in 1970 and $0.75 in 2000. The average wage in manufacturing was $3.23 per hour in 1970 and $14.32 in 2000. Given what you know about the increases in the price of the newspaper and wages, what does this tell you about workers’ well-being (as measured by standard of living or purchasing power)?
A one-pound bag of cookies cost 30 cents in 1922. If the CPI in 1922 was 17 and the CPI in 2014 is 230, convert the price of the cookies into 2014 prices. Group of answer choices A) $13.52 B) $0.02 C) $11.73 D) $4.06

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		the ability to purchase necessities vs. luxury goods
		the ability to purchase "normal" vs. "inferior" goods
		how economic decisions are influenced by the government
		the quality of goods and services that can be bought with nominal wages
		the quantity of goods and services that can be bought with nominal wages