Suppose a person receives a 9% increase in pay when inflation is 8%. In this case, the nominalincrease is ______________, and the real increase isIf the employee overestimates the real gain, thiswould be an example ofO 9%, 8%, price confusionO 9%, 8%, menu costsO 1%, 8%, shoe leather costsO8%, 1%, sticky wagesO9%, 1%, employee misperceptions1

Answer: Given, Increase in pay = 9% Inflation = 8% An increase in pay is a nominal increase. Thus…

Suppose a person receives a 9% increase in pay when inflation is 8%. In this case, the nominal increase is and the real increase is If the employee overestimates the real gain, t would be an example of O 9%, 8%, price confusion O 9%, 8%, menu costs O 1%, 8%, shoe leather costs O 8%, 1%, sticky wages O 9%, 1%, employee misperceptions

Suppose a person receives a 9% increase in pay when inflation is 8%. In this case, the nominal increase is and the real increase is If the employee overestimates the real gain, t would be an example of O 9%, 8%, price confusion O 9%, 8%, menu costs O 1%, 8%, shoe leather costs O 8%, 1%, sticky wages O 9%, 1%, employee misperceptions

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 18P

See similar textbooks

Similar questions

Suppose the cost of the basket in Year 3 was $4,000 and the cost of the basket in the base year (Year 1) was $4,20o. O a. The inflation rate for Year 3 was 5 per cent O b. The inflation rate for Year 1 was 5 per cent O c. We cannot discern anything from the data provided O d. The CPl for Year 3 is 105
.ull T-Mobile ? * 2:21 AM @ O 5% 4 A myopenmath.com How to calculate the inflation rate for food, 1913-2021 Start with the inflation rate formula: CPI in 2021/CPI in 1913 * 1913 USD value = 2021 USD value Then plug in historical CPI values from above. The CPI for Food was 9.923 in the year 1913 and 270.938 in 2021: 270.938/9.923 * $20 = $546.08 Therefore, according to the U.S. Bureau of Labor Statistics, $20 in 1913 has the same "purchasing power" as $546.08 in 2021 (in the CPI category of food). Use the highlighted info above to answer each question below. Round appropriately to the context. a. The absolute change in the cost of food from 1913 to 2021 was | 261.01 2$ Calculation: 261.015 b. The rate of change in the cost of food from 1913 to 2021 was $/year
If nominal interest rate is 20% and real interest rate 11% in the economy, what is the inflation rate? O a. 10% O b. 31% Oc.9% Od. 1%
If the Consumer Price Index changes from 118 in the year 2009 to 127 in the year 2011, the average rate of inflation per year over this two-year period is approximately O A. 7.6 percent. О В. 2.4 рercent. O C. 4.7 percent. O D. 8.7 percent. ОЕ. 3.7 регcent.
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
Suppose you start saving for retirement when you are 26 years old. You invest $5,000 the first year and increase this amount by 3% each year to match inflation for a total of 20 years. The interest rate is 9% per year. 1. How much will you have in account immediately after making the last deposit at age 45. OA. $56,478 O B. $316,525 O C. $307,734 O D. $617,544 2. How much will you have, if the interest rate was only 3% per year (instead of 9%)? OA. $180,611 OB. $168,704 C. $97,087 O D. $175,351
Assume the CPI increases from 102 to 113, The rate of inflation for that year is Multiple Choice O O O O 10.8%.. 2.0%. 13.0%. 11.0%.
The following table shows some values of the Consumer Price Index and the corresponding inflation rates for 2012-2015. Year CPI Inflation Rate 2012 229.6 2.1% 2013 233.0 2014 1.6% 2015 237.0 0.1% The value of the Consumer Price Index in 2014 was approximately. Select one: O a. 234.6 O b. 235.0 O c. 246.9 O d. 236.7
If the cost of health and personal care increases by 20 percet, then, other things the same, how much is the CPI likely to increase? 11 Select one: O a. by about 1 percent O b. by about 2 percent O c. by about 4 percent O d. by about 3 percent
Suppose, you are lending money to your friend Julia and you want a real rate of return of 8.00%. Furthermore, you expect the inflation rate to be 4.50%. Which of the following interest rates should you charge? O A. 6.25% O B. 12.50% O C. 8.00% O D. 3.50% Click to select your answer. lenovo V560
Table 6.2 Year CPI 1 150 154 152 4 156 160 Refer to Table 6.2. If a worker earned $40,000 years ago when the CPI was 140, what is the minimum salary he must earn in year 2 to "more than keep up with inflation"? O $44,000.00 O $43,428.57 O $42,857.14 O $44,571.43 3.
Table 24-2 The table below pertains to Pieway, an economy in which the typical consumer's basket consists of 15 bushels of peaches and 10 bushels of pecans. Year Price of Peaches 2012 $11 per bushel 2013 $9 per bushel O 1.04 percent. 10 percent. Price of Pecans Refer to Table 24-2. If 2012 is the base year, then the inflation rate in 2013 was O 23.5 percent. O 4.4 percent. $6 per bushel $10 per bushel