Suppose the consumer price index (CPI) accurately measures inflation, and: Suppose in 1961 your grandfather earned$12,000, and the CPI in 1961 was 30. In 2020, the CPI was 260. Ceteris paribus, it follows that your grandfather's salary in2020 dollars equals:O a. $1,385O b. $31,200O c. $104,000O d. $312,000Next page

Answer: Given, Salary in 1961 = $12,000 CPI in 1961 = 30 CPI in 2020 = 260 The formula to find the…

Answered: Suppose the consumer price index (CPI)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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estion 8 Table 20-15 Nominal Average Hourly Earnings $10 Year CPI 2014 1.00 2015 10 1.05 2016 12 1.10 Refer to Table 20-15. Looking at the table above, the nominal average hourly earnings that you should have in 2016 in order to achieve the same purchasing power as in 2014 are O $10.90. O $11. O $12. O $13.20.
Table 9-5 Year CPI 2017 201 2018 210 Refer to Table 9-5. Consider the following values of the consumer price index for 2017 and 2018. The inflation rate for 2018 was equal to O 4.5 percent. O 8.0 percent. O 215 percent. O 3.9 percent.
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Suppose that, as a result of an increase in the price of wheat, several large U.S. grocery chains, such as Harris Teeter and Food Lion, increase the prices of all of their bread products. It follows that, ceteris paribus, the increase in the price will increase: O a. both the CPI and the GDP deflator. O b. neither the CPI nor the GDP deflator. O c. the GDP deflator but not the CPI. O d. the CPI but not the GDP deflator. Next page
The cost of the CPI basket in base-period prices is $200 and the cost of the CPI basket in current-period prices is $450. The CPI in the current year is O 450. O 225. O 300. O 250. O 44,44,
2014 2015 Item Quantity Price Price 4 €5.00 €7.50 Y €3.00 €3.00 4 €1.00 €1.50 The information in the table above gives the 2014 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2015 prices. What is the value of the CPI for 2015? О 133 O 140 O 100 O 75
Table 6.2 Year CPI 150 2 154 3. 152 4 156 5. 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
Suppose Jack has $400 in nominal income. The price per unit of DVDs is $20. Accordingly, what is Jack's real income in terms of DVDs? O a. O b. O c. Od. between 0 and 15 between 15 and 30 between 30 and 45 between 45 and 60 e. greater than 60
ning Time: 09 minutes, 39 seconds. tion Completion Status: O E. frictional, cyclical, and structural unemployment. QUESTION 6 Suppose an individual earned a salary of $12,000 in 1970. If the CPI was 38.8 in 1970 and 258.8 in 2020, then the value of this individual's salary in 2020 dollars is approximately O A. $80,041. O B. $71,456. OC. 593,381. O D.$1,799. O E. $60,398. QUESTION7 If real GDP remains constant we know for sure that O A. output has declined. O B. output has risen but prices have remained constant. O C. prices have remained constant. O D. output has remained constant. O E. output has risen. QUESTION 8 All of the following factors have contributed to the rapid expansion of international trade since the 1980s, except for O A. progress in communications. O B. trade agreements. Click Save and Submit to save and submit. Click Save All Answers to save all answers.
If the CPI was 228 at the end of 2013 and 236 at the end of 2014, what was the inflation rate in 2014? Select one: A. 8 percent B. 236 percent C. 4 percent O D. 3.4 percent O E. 3.5 percent
The CPI or Consumer Price Index measures O Inflation by monitoring the change in gas prices and food items O Real GDP by comparing average change over time in production of consumer goods and services. O Inflation by comparing the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. O Unemployment by comparing the production of consumer goods and services with potential production
LO 5 The table below lists the CPI and wage values for the United States from different decades. a. Complete the table by computing the real income for each year shown in the table. Instructions: Round your answers to two decimal places. Nominal and Real Income Year 1967 1977 1997 2007 2013 Average Nominal Mage (dollars) $7,877 13,579 26,055 37.177 CPI 3.4 60.6 113.6 160.5 207.1 233.0 Average Beal Mage (dollars) 3 52,322 Instructions: Enter the year using all four numbers tyy b. Of the years listed above, the paycheck of the average worker was highest in c Of the years listed above, the purchasing power of the average worker was highest in

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