Suppose the median household earned $9,096 in 1976 and $52,382 in 2016. During that time, also suppose the CPI rose from 53.6 to217.11.Instructions: Round your answers to one decimal place.a. The total growth rate in nominal median household income from 1976 to 2016 was:b. The total growth rate in real median household income from 1976 to 2016 was:%.%.

a. The growth rate in nominal median household income can be calculated as follows: Growth rate in…

Answered: Suppose the median household earned…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter5: National Income Accounting

Section: Chapter Questions

Problem 6E

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The median Canadian household earned $9,397 in 1973 and $70,400 in 2019. During that time, though, the CPI rose from 23.7 to 131.5. Instructions: Enter your answer as a percentage rounded to one decimal place. a. The total growth rate in nominal median household income from 1973 to 2019 was %.
The question is in the attached image. Answer all three
Suppose the median household earned $9,242 in 1976 and $52,624 in 2016. During that time, also suppose the CPI rose from 45.6 to 219.75. Instructions: Enter your answer as a percentage rounded to one decimal place. a. The total growth rate in nominal median household income from 1976 to 2016 was b. The total growth rate in real median household income from 1976 to 2016 (use the 2016 year's dollar values in your computations) was
Suppose the median household earned $9,199 in 1976 and $52,188 in 2016. During that time, also suppose the CPI rose from 54.7 to 210.09. Instructions: Enter your answer as a percentage rounded to one decimal place. a. The total growth rate in nominal median household income from 1976 to 2016 was b. The total growth rate in real median household income from 1976 to 2016 was
As a result of a drought, prices and produced quantities in a country change as follows: Assume that the economy produces and consumes only the above agricultural products.a) Calculate the nominal GDP and the real GDP for the year 2021 with the base year 2020.b) By how many percent have the prices of goods increased?c) Calculate the CPI for the year 2021 according to Laspeyres and Paasche.d) Describe the general differences between the CPI and the GDP deflator.
Suppose that the CPI does indeed overstate the rate of inflation. When the CPI increases by 5% and household incomes increase by 5%, we should conclude that the real incomes of households: a) increased. b) stayed constant. c) decreased. d) increased more slowly than inflation.
Consider the following basket of student essentials: 2019 2020 Burritos $6.30 $6.60 Pizzas $9.90 $10.00 Movie Tickets $10.00 $10.50 Energy Drinks $4.99 $5.99 a. Using 2019 as the base year, what is the CPI in 2019? b. Assume students buy 30 burritos, 25 pizzas, 15 movie tickets, and 200 energy drinks each year. What is the CPI in 2020 using 2019 as a base year? What is the inflation rate? Would this rate be higher or lower if students bought more energy drinks?
Assume that people in an economy only consume the following goods shown in the table: Rice Meat Juice Year 1 price P2 P4 P1 Year 1 quantity 100 100 200 Year 2 price P2 P6 P2 Year 2 quantity 100 100 200 Calculate the % change in the price of every goods. Using the same method with the CPI, calculate the % change of the overall price level. If you were to learn that juice increased in size from Year 1 to Year 2, should that information affects your calculation of the inflation rate? If so, how? If you were to learn that juice introduced new flavors in Year 2, should that information affect your calculation of the inflation rate? If so, how?
In 2014, Apple’s revenue was $183 billion, and it grew to $267 billion in 2018. a. What is the nominal growth rate of Apple’s revenue from 2014 to 2018? b. What is the value of Apple’s 2018 revenue in 2014 dollars? (In 2014, the CPI was 236.7, and in 2018, it was 251.1.) c. What is the real growth rate of Apple’s revenue from 2014 to 2018?
question C,D,E,F
As 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?
The CPI in 1974 equaled 0.49. The CPI in 1975 equaled 0.54. Use the CPI from both years to answer the following two questions. a.) The rate of inflation between 1974 and 1975 was [ Select ] percent. b.) Let's say that average family incomes increased by 8% from 1974 to 1975 in nominal terms. This implies that the average real income for families in 1975 [ Select ] , compared to their purchasing power in 1974.

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