QUESTION 6Price of Beni's house increased from S100,000 to $200,000 in the last decade. Cost of living quadrupled (increased 4 times as much). What can you say about Beni's house?O The house is cheaper now, because if it had appreciated at the same rate as all other goods as services, it should have been 4 times more ($400,000) but it is $200,000 instead.Nominal price has inereased but also nominal prices of other goods have increased. So, the price costs the same.The house is more expensive now, comparing $200,000 to $100,000We do not have enough information to compare prices across time.

The prices increased 4 times and the cost of the house increased 2 times ( from 100000 to 200000).…

Price of Beni's house incrcasod from S100,000 to $200,000 in the last decade. Cost of living quadruploed (increased 4 times as much). What can you say about Beni's house? The house is cheaper now, because if it had appreciatod at the same rate as all ther goods as services, it should have been 4 times more (S400,000) but it is $200,000 instend. Nominal price has increasod but also nominal prices of other goods have increasod. So, the price costs the same. The house is more expensive now, comparing S200,000 to $100,000 We do not have enough information to compare prices across time.

Price of Beni's house incrcasod from S100,000 to $200,000 in the last decade. Cost of living quadruploed (increased 4 times as much). What can you say about Beni's house? The house is cheaper now, because if it had appreciatod at the same rate as all ther goods as services, it should have been 4 times more (S400,000) but it is $200,000 instend. Nominal price has increasod but also nominal prices of other goods have increasod. So, the price costs the same. The house is more expensive now, comparing S200,000 to $100,000 We do not have enough information to compare prices across time.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 7SCQ: Go to this website (http://www.measuringworth.com/ppowerus/) for the Purchasing Power Calculator at...

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