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 %.
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
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?
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
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.
Consider an economy with only two goods: bread and wine. Let's say that, in 2008' the typical family bought four loaves of bread at $1.50 per loaf and two bottles of wine for $9 per bottle. In 2018, let's say bread cost $4.50 per loaf and wine cost $16 per bottle (fictitious prices). The CPI for 2018 (using 2008 as base year) is approximately ..... Select one: a. 110. b. 239. c. 195. d. 208.
Suppose there are three goods in an economy, namely pencils, mobile phones and capital goods for production. In both Year 1 and Year 2, the production of goods and services in this economy consists of 300 pencils, 200 mobile phones and 100 units of capital goods used for production. Answer the following questions. Please show all the steps you use to arrive at your answers. i Find the nominal GDP for the current year and base year. ii What is the percentage increase in the CPI? iii What is the percentage increase in the GDP deflator?
A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth. In 2015, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent $18 on juice and $24 on cloth. The price of juice in 2015 was $2 a bottle, and the price of cloth was $6 a yard. In 2016, juice is $3 a bottle and cloth is $4 a yard. Calculate the CPI in 2016 and the inflation rate between 2015 and 2016.
A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth. In 2015, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent $27 on juice and $20 on cloth. The price of juice in 2015 was $3 a bottle, and the price of cloth was $5 a yard. In 2016, juice is $5 a bottle and cloth is $4 a yard. Calculate the CPI in 2016 and the inflation rate between 2015 and 2016. The CPI in 2016 is >>> Answer to 1 decimal place. The inflation rate between 2015 and 2016 is percent. >>> Answer to 1 decimal place. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.

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