Suppose that the price of bananas rises by 30%. This will have the largest impact on which measure of inflation?O A. GDP DeflatorO B. Core CPIOC.CPIO D. Chained CPIReset SelectionQuestion 16 of 25In 1983, the BLS chose to exclude home prices from the CPI. Why did they do this?O A. It is difficult to get home prices in a timely fashionB. Home Prices have an asset value component that doesn't reflect cost of livingC. Home sizes have changed over the years making it difficult to compare home prices over timeD. Home prices are too volatile in the short runReset Selection

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Suppose that the price of bananas rises by 30%. This will have the largest impact on which measure of inflation? O A GDP Deflator O B. Core CPI O D. Chained CPI Reset Selection Question 16 of 25 In 1983, the BL.S chose to exclude home prices from the CPI. Why did they do this? O A ti iicult to get home prices in a timely fashion O B. Home Prices have an asset value component that doesn't reflect cost of living OC. Home sizes have changed over the years making it difficult to compare home prices over time O D. Home prices are too volatile in the short run Reset Selection

Suppose that the price of bananas rises by 30%. This will have the largest impact on which measure of inflation? O A GDP Deflator O B. Core CPI O D. Chained CPI Reset Selection Question 16 of 25 In 1983, the BL.S chose to exclude home prices from the CPI. Why did they do this? O A ti iicult to get home prices in a timely fashion O B. Home Prices have an asset value component that doesn't reflect cost of living OC. Home sizes have changed over the years making it difficult to compare home prices over time O D. Home prices are too volatile in the short run Reset Selection

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 3 If nominal interest rate increased by 0.2 percentage points and inflation increased by 0.4 percentage points, then the real interest rate O A. increased by 0.2 percentage points O B. increased by 0.4 percentage points O C. decreased by 0.2 percentage points O D. decreased by 0.4 percentage points
The interest rate on Real Return Bonds is a direct measure of Select one: O a. the rate of deflation O b. the rate of inflation O c. the real interest rate O d. the nominal interest rate
Calculate the change in real wage
Suppose that over time, households used flash sale online retailers at an increasing rate. As a result the CPI is likely to be Select the correct answer below: O underestimated because households would buy products at lower prices than those collected by the U.S. Bureau of Labor Statistics underestimated because households would buy products at higher prices than those collected by the U.S. Bureau of Labor Statistics overestimated because households would buy products at lower prices than those collected by the U.S. Bureau of Labor Statistics overestimated because households would buy products at higher prices than those collected by the U.S. Bureau of Labor Statistics
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Using the table below and 2000 as the base year, choose the statement holding true Year 2000 2022 Grains Movie shows Р 1 5 Q 500 300 Р 1.05 10.50 Q 590 210 2021 Р 1 10 Select one: O a The CPI in 2022 is equal to 183 75% and the CPI in 2021 is equal to 175% The inflation rate in 2022 is equal to 5% Ob The CPI in 2022 is equal to 172.25% and the CPI in 2021 is equal to 161.4%. The inflation rate in 2022 is equal to 6.72% c. The CPI in 2022 is equal to 172.25% and the CPI in 2021 is equal to 162.5% The inflation rate in 2022 is equal to 6% Od. The CPI in 2022 is equal to 161.4% and the CPI in 2021 is equal to 148.57%. The inflation rate in 2022 is equal to 4.13% 600 200
(a) Explain the difference between the nominal wage and the real wage. Using a wage setting curve and aprice setting curve illustrate how the real wage determines the equilibrium level of employment in theeconomy. (b) On a new diagram use a wage setting curve and a price setting curve to illustrate the change to theequilibrium level of employment if there is a reduction in the degree of competition faced by firms. Clearlystate what will occur to the real wage and the level of unemployment. (c) Suppose the economy has low aggregate demand with high unemployment. Use a new wage setting curveand price setting curve diagram to explain how the economy could automatically adjust back to equilibrium.Would this occur in reality? Justify your answer.
Question 3 In Germany, banks are paying a positive interest rate on peoples' savings, as a result O a. Savers are worse off if the inflation rate in Germany is zero O b. Savers are better off if the inflation rate in Germany exceeds the nominal interest rate Oc. Savers are worse off if the deflation rate in Germany is zero O d. Savers are better off if the deflation rate in Germany is zero
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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.
If the nominal interest rate is a constant 15 percent and anticipated inflation falls from 10 percent to 7 percent, the real interest rate would change from Select one: O A. 8 to 5 percent. O B.7 to 9 percent. OC5 to 8 percent. O D. 15 to 10 percent.
making a large number of goods that are the same is?