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 CPI for Year 3 is 105

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 CPI for Year 3 is 105

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose you start saving for retirement when you are 31 years old. You invest $5,200 the first year and increase this amount by 4% each year to match inflation for a total of 25 years. The interest rate is 9% per year. 1. How much will you have in account immediately after making the last deposit at age 55 OA. $1,174,047 OB. $71,848 OC. $578,420 O D. $619,553 www 2. How much will you have, if the interest rate was only 4% per year (instead of 9%)? OA. $125,000 B. $303,117 OC. $333,230 OD. $346,559
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
what is
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.
5.0 4.0 3.0 2.0 1.0 1975 1985 1995 2005 Year In the above figure, which period(s) show deflation? O Only from 1995 to 2005. O Only from 1985 to 1995. O None of the above because there is no year with deflation in the above figure. O From both 1975 to 1985 and from 1995 to 2005. Inflation rate (percent per year)
If the nominal wage is higher than real wage, it should be that O Prices are increasing and then decreasing O Prices are constant O Prices are increasing Prices are decreasing. This is a required question
20) You know that a candy bar costs sixty OMR today.You also know the CPI for 1970 and the CPI for today.Which of the following would you use to compute the price of the candy bar in 1970 prices? Select one: O a. sixty OMR(today's CPI-1970 CPI) O b. sixty OMR(1970 CPI / today's CPI) O c. sixty OMR(1970 CPI-today's CPI) O d. sixty OMR(today's CPI / 1970 CPI)
Question 4 The prices and quantities in 2010 and 2015 were as follows. 2010: Good 1 $10/15 items; Good 2 $5/20 items. 2015: Good 1 $5/20 items; Good 2 $15/10 items. Compute the 2015 CPI inflation rate using 2010 as the basket. A. 50% B. ..5 OC. 150% OD. 1.5
In 2008 the price index was calculated at 137.9 with 2003 as the base year. In 2009 the price index increased to 148.7. What was the inflation from 2008-2009? O 7.8% O 7.3% O 10.8%
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
"If the consumer price index was 102 in the base year and 117 in the following year, the inflation rate was" O 15 percent. 14.7 percent. 7 percent. O 1.07 percent.