Suppose the Consumer Price Index in 2016 is 127.1 with 2002 as the base year a) What is the purchasing power of the dollar compared to 2002 b) What is the real income relative to 2002 of person whose income was $72500
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Suppose the
a) What is the
b) What is the real income relative to 2002 of person whose income was $72500
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- Suppose the Consumer Price Index in 2019 is 131.9, with 2002 as the base year. (a) What is the purchasing power of the dollar in 2019 compared to 2002? (b) What is the real income, relative to 2002, of a wage earner whose income amounted to 62,900 in 2019?Suppose the Consumer Price Index for 2012 was 121.8 and for 2014 it was 125.2. (a) Determine the purchasing power of the dollar in 2012 and 2014 relative to the base year 2002. (b) Compute the purchasing power of the dollar in 2014 relative to 2012. (a) The purchasing power of the dollar in 2012 is. (Round to three decimal places as need.) The purchasing power of the dollar in 2014 is (Round to three decimal places as need.) (b) The purchasing power of the dollar in 2014 relative to 2012 is. (Round to three decimal places as need.)Suppose the Consumer Price Index for 2012 was 121.4 and for 2014 it was 124.4. (a) Determine the purchasing power of the dollar in 2012 and 2014 relative to the base year 2002. (b) Compute the purchasing power of the dollar in 2014 relative to 2012. ..... (a) The purchasing power of the dollar in 2012 is (Round to three decimal places as need.) The purchasing power of the dollar in 2014 is (Round to three decimal places as need.) (b) The purchasing power-of the dollar in 2014 relative to 2012 is. (Round to three decimal places as need.)
- A consumer expenditure survey reports the following information on consumer spending: 2020 2021 Price Quantity Price Quantity Product (1) $10 7 $10 7 Product (2) $6 10 $8 12 Product (3) $12 5 $14 10 a) Using 2020 as the base year, by how much does a "cost of products" index increase between 2020 and 2021? b) Calculate the inflation rate between 2020 and 2021, using the CPI you calculated in (a)The CPI increased from 114 to 120 between two years. Average annual household income increased from $30,000 to $60,000 in nominal terms between those two years. What is the percentage increase in the purchasing power of average annual household income between the two years? Express your answer in percentage terms, and round to two decimal places. 90 margin of error +/- 0.05Assume that in 1974, interest rates were 7.443% and the rate of inflation was 12.065%. What was the real interest rate in 1974? How would the purchasing power of your savings have changed over the year? The real rate of interest in 1974 was %, which means that the purchasing power of your savings would have by (Round to three decimal places.) decreased increased
- Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $9.00. In year one, $72.00 will buy(0.11, 0.13, 4.5, 8, 9) baskets, and in year two, $72.00 will buy (0.11, 0.13, 4.5, 8, 9) baskets. .The table below lists the prices from last year and the base year for a college-related basket of goods. Assume that the typical basket of goods for a college student consists of 200 gallons of gas, 60 pizzas, 45 6-packs, and 2 textbooks. Basket of College-Related Goods Basket of Goods Price Base Year (dollars) Price Last Year (dollars) Gasoline (per gallon) $ 1.70 $ 2.20 Pizza (per pizza) 7.85 Beer (per 6-pack) 6.88 4.20 4.10 Textbook (per book) 98.00 a. Using the values above, what is the rate of inflation between the base year and last year? % b. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $100 per textbook. What is the rate of inflation between the base year and last year now? % 229.00Shows the fruit prices that the typical college student purchased from 2001 to 2004. What is the amount spent each year on the “basket” of fruit with the quantities shown in column 2? 2. Construct the price index for a “fruit basket” in each year using 2003 as the base year. 3. Compute the inflation rate for fruit prices from 2001 to 2004.
- Use the data in Table 1 to express the continuously compounding annual fate of inflation from 1972 to 1975. Table 1. Personal Consumption Expenditures Price Index (PCEPI), 1970-1975. Year 1970 1971 1972 1973 1974 . 1975 PCEPI 20.9 21.8 22.5 23.8 26.2 28.5 [In(22.5)-In(28.5))/3 O [In(22.5)-In(28.5)1/4 O [In(28.5)-In(22.5))/3 O [In(28.5)-In(22.5)]/4As a first step in computing the consumer price index (CPI), a survey of consumers is done to determine the “basket of goods” purchased by a typical consumer. Suppose that 2009 is given as the base year and, consistent with the data shown in the table above, it was decided that the basket of goods in this economy should consist of one unit of food and two units of clothing. I. Using 2009 as the base year,what is the CPI in each year: 2009, 2010, and 2011? ii. What is the inflation rate in 2010 and 2011?Calculate the GDP deflator and the rate of inflation for each year: (€ million) Nominal GDP Real GDP 2013 3,540,000 2,900,000 2014 4,730,000 3,250.000 2015 5,110,000 4,800,200
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