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 costwas 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 wasO 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%.

"CPI is computed by multiplying 100 by the ratio of basket's cost in the particular year to the…

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 S82; 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%. c. 116.9 and the inflation rate was 9.8%. O d. 116.9 and the inflation rate wvas 16.9%.

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 S82; 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%. c. 116.9 and the inflation rate was 9.8%. O d. 116.9 and the inflation rate wvas 16.9%.

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 34P: The total price of purchasing a basket of goods in the United Kingdom over four years is: year...

See similar textbooks

Similar questions

The index number representing the price level changes from 110 to 115 in one year and then from 115 to 120 the next year. Since the index number increases by five each year, is five inflation rate each year? Is the inflation rate the same each year? Explain your answer.
Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the CPI to convert from nominal to real would be more appropriate man using the GDP deflate:
The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1=940, year 2=970, year 3=1000, and year 4=1070. Calculate two price indices, one using year 1 as the base year (set equal to 100) and the other using year 4 as the base year (set equal to 100). Then, calculate the inflation rate based on the first price index. If you had used the other price index, would you get a different inflation rate? If you are unsure, do the calculation and find out.
Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the GDP deflator to convert from nominal to real would be more appropriate than using the CPI.
Confuse in this question please help
Please confirm my answer and justify!
The reference base period for the CPI is 1982-1984. In January 2018, the CPI was 247.9. What does this number tell us? This number tells us that the of the prices paid by urban consumers for a fixed basket of consumer goods and services was O A average; 147.9 percent higher in January 2018 than the average of 1982-1984 B. inflation rate; 47.9 percent per year OC. inflation rate; 147.9 percent per year O D. average; 247.9 percent higher in January 2018 than the average of 1982-1984
table Year Price of Meat Price of Rice 2003 20 OMR 20 OMR 2004 20 OMR 30 OMR Suppose that the basket of goods in the CPI consisted of 3 kilos of meat and 2 kilos of rice. What is the consumer price index for 2004 if the base year is 2003? O a. 105 O b. 125 C. 100 O d. 115
If your nominal income is $80,000 and your real income in base year prices is $71,500, what is the CPI? O A. 112 O B. 106. O c. 100 O D. 89 O E. 150
30
In 2019 and in 2020, consumers in Dexter purchased only books and pens. 2019 2020 The prices and quantities for 2019 and 2020 are listed in the table. Item Price Quantity Price Quantity Books $4 6. $10 10 The reference base period for Dexter's CPI is 2019, and 2019 is also the year of the Consumer Expenditure Survey. Pens $6 $4 10 What is the inflation rate in 2020? The inflation rate in 2020 is percent. O A. 148.1 Ов. 2.1 OC. 80.0 D. 48.1 Click to select your answer. MacBook Air DII DD F12 F11 F10 F9 F8 20 F6 F7 F5 F4 F3 esc F1 F2 ! @ 23 $ 7 8 2 3 4 5 1 { P E R T Y Q W %3D tab L F G H S + II
Table 6.2 Year CPI 150 154 152 4. 156 160 Refer to Table 6.2. If a worker earned $40,000 years ago when the CPI was 130, what is the minimum salary he must earn in year 4 to "more than keep up with inflation"? O $49,230.77 O $48,000.00 O $46.769.23 O $46.153.85