Suppose the information in the table is for a simple economy that produces and consumes only four goods and services: textbooks, hamburgers, shirts and cotton. Base Year 2011 2011 2012 2013 Product Quantity Price Quantity Price Quantity Price Textbooks 90 $50 100 $60 100 $65 Hamburgers 75 2 100 2 120 2.25 Shirts 50 30 50 25 65 25 Cotton 100 0.80 800 0.60 120 Please enter only the numbers (no commas, dollar signs etc.) in the spaces provided. 0.70 • Calculate the cost of the market basket for 2012 (using 1 decimal place). • Calculate the cost of the market basket for 2013 (using 1 decimal place). • Calculate the CPI for 2012 (using 1 decimal place). • Calculate the CPI for 2013 (using 1 decimal place). • Calculate the inflation rate for 2012 using the CPI (using 1 decimal place). % • Calculate the inflation rate for 2013 using the CPI (using 1 decimal place). % • Calculate the GDP deflator for 2012. ● Calculate the GDP deflator for 2013 (using 1 decimal place).

Suppose the information in the table is for a simple economy that produces and consumes only four goods and services: textbooks, hamburgers, shirts and cotton. Base Year 2011 2011 2012 2013 Product Quantity Price Quantity Price Quantity Price Textbooks 90 $50 100 $60 100 $65 Hamburgers 75 2 100 2 120 2.25 Shirts 50 30 50 25 65 25 Cotton 100 0.80 800 0.60 120 Please enter only the numbers (no commas, dollar signs etc.) in the spaces provided. 0.70 • Calculate the cost of the market basket for 2012 (using 1 decimal place). • Calculate the cost of the market basket for 2013 (using 1 decimal place). • Calculate the CPI for 2012 (using 1 decimal place). • Calculate the CPI for 2013 (using 1 decimal place). • Calculate the inflation rate for 2012 using the CPI (using 1 decimal place). % • Calculate the inflation rate for 2013 using the CPI (using 1 decimal place). % • Calculate the GDP deflator for 2012. ● Calculate the GDP deflator for 2013 (using 1 decimal place).

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 the information in the table is for a simple economy that produces and consumes only four goods and services: textbooks, hamburgers, shirts and cotton. 2011 2012 2013 Product Quantity Price Quantity Price Quantity Price Textbooks 90 $50 100 $60 100 $65 Hamburgers 75 2 100 2 120 2.25 Shirts 50 30 50 25 65 25 Cotton 100 0.80 800 0.60 120 0.70 Please enter only numbers (no commas, dollar signs etc) in the spaces provided. Calculate the CPI for 2012 (using 1 decimal place). _____ Calculate the CPI for 2013 (using 1 decimal place). _____ Calculate the inflation rate for 2012 using the CPI (using 1 decimal place). ____% Calculate the inflation rate for 2013 using the CPI (using 1 decimal place). ____%
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