Suppose the residents of country P consume only peaches and pecans. The table below shows the prices and quantity of peaches and pecans consumed for two consecutive years. Note that all prices are per bushel. Suppose that the typical consumer basket consists of 10 bushels of peaches and 15 bushels of pecans. Assume 2000 is the base year. Year 2000 2001 Price $11 $9 Peaches Quantity 10 20 What is the consumer price index for 2001? Price $6 $10 Pecans Quantity 10 10
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- (Figure: Coffee and Ice Cream I) Kemala spends her income on ice cream and coffee, and coffee sells for $1 a cup. If ice cream sells for $6 per gallon, Kemala will purchase: Coffee 12- (cups) 11 10 98865 7 4 3 2 1 0 U₁ O 1 gallon. O 6 gallons. O 8 gallons. 2 gallons. U₂ 1 2 3 4 5 6 7 8 9 10 Ice cream (gallons)ng Exchange 2021 ON1000- Principles of Economics 1| S1 21/22 Time left 0:34:02 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008. stion 18 yet vered Prices and Quantities ked out of Year Price of Cereal Quantity of Price of Milk Quantity of Cereal Milk Flag estion 2008 $4.00 90 $1.50 150 2009 $4.00 100 $2.00 180 In 2009, this country's Select one: a. real GDP was $660, and the GDP deflator was 115.2 b. real GDP was $670, and the GDP deflator was 115.2 C. real GDP was $670, and the GDP deflator was 113.4 d. real GDP was $660, and the GDP deflator was 113.4 Next page Previous pageGo to this website (http://www.measuringworth.com/ppowerus/) for the Purchasing Power Calculator at measuringWorth.com. How much money would it take today to purchase what one dollar would have bought in the year of your birth?
- 5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Amount Spent Price Price Amount Price Amoun Amount Price Spent t Spent Spent Apples Bananas $0.50 $0.20 $0.65 $2.00 10 $0.75 $0.25 $0.70 $0.85 $0.25 $0.90 2.05 $0.88 $0.29 $0.95 12 Grapes Raspberries 1 Total Price Index Inflation 2. 1.9 2.13 Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004. Who in an economy is the big winner from inflation and why?25) Hillary is trying to determine the cost of health care to college students and parents’ ability to cover those costs. She assumes that the cost of one year of health care for a college student is $1,000 today, that the average student is 18 when he or she enters college, that inflation in health care cost is rising at the rate of 10 percent per year, and that parents can save $100 per year to help cover their children’s costs. All payments occur at the end of the relevant period, and the $100/year savings will stop the day the child enters college (hence 18 payments will be made). Savings can be invested at a nominal rate of 6 percent, annual compounding. Hillary wants a health care plan that covers the fully inflated cost of health care for a student for 4 years, during Years 19 through 22 (with payments made at the end of Years 19 through 22). How much would the government have to set aside now (when a child is born), to supplement the average parent’s share of a child’s college…Part C 3. The manager of a certain gasoline station wants to forecast the demand for the unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The manager has accumulated the following data demand for unleaded gasoline from sales during the past eight months. Month Gasoline Demanded (gallons) Mar 900 Given that the forecast for March is 920. Apr 755 May 650 Jun 550 Jul 625 Aug 730 Sept 820 Oct 1 100 a. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.25. b. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.45. c. Plot the actual demand and the forecasts determined in part a and b on the same graph and compare them. d. Make a comparative analysis out of your answers in the plotted data. (3-5 sentences)
- ciples of Macroeconomics || Fall20 1 What does the PPI measure? ed Select one: d out of O a the average change in the prices paid for all goods produced in the economy over a given year O b. the level of production of goods and services generated in the economy in a given year question O c. the difference between the prices consumers pay for goods and services and the prices producers pay for O d. the average of the prices received by producers of goods and services at all stages of the production pro Ti navigation Type here to searchTable 25-1 The following table pertains to Quicheland, an economy in which the typical consumer's basket consists of 11 bushels of apples and 5 bushels of almond. Year Year 1 Year 2 Price of Apples (Dollars per bushel) 14 9 90.01. O 79.42. O 91.62 O 110.40 Price of Almond (Dollars per bushel). 5 13 Refer to Table 25-1. If Year I is the base year, then the CPI for Year 2 wasSay you define your permanent income as the average income this and the past 4 years’ incomes and you always consume 4/5 of your permanent income. Your earnings record over these years has been: Yt = 40,000 Yt-1 = 38,000 Yt-2 = 34,000 Yt-3 = 32,000 Yt-4 = 31,000 If next year your income increases to Yt+1 = 46,000 by how much will your consumption change between year t and year t+1?
- National Income 700 Personal income taxes 154 Other income not paid out 44 Corporate profits tax 50 Undistributed corporate profits 32 Government transfer payments 100 Refer to the table above to answer the following question. What is the value of personal income? O a. 654 O b. 590 O c. 690 O d. 674D. The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2009. Year Price Quantity Price of Quanti of of Pancakes of Waffles Waffles Pancak 2008 $2.00 100 $1.00 100 2009 $2.00 120 $2.00 150 2010 $2.0O 150 $3.00 200 2011 $4.00 180 $3.00 220 1. In 2009, this country's nominal GDP was 2. In 2009, this country's real GDP was 3. In 2011, this country's GDP deflator was 4. In 2011, this country's real GDP growth rate was 5. This country's inflation rate in 2011 wasArtica is a nation with a simple economy that produces onlysix goods: oranges, bicycles, magazines, paper, orange juice, and hats. Assume that half of all the oranges are used to produce orange juice and one-third of all the paper is used to produce magazines. 2009 2010 2011 PRODUCT QUANTITY PRICE QUANTITY PRICE QUANTITY PRICE 180 $ 0.90 200 $ 1.00 200 $ 1.25 Oranges Bicycles 20 85.00 25 90.00 30 95.00 Magazines Paper 175 3.50 150 3,50 150 3.25 675 0.60 600 0.50 630 0.50 Orange juice 40 3.50 50 4.00 60 4.50 Hats 70 10.00 80 12.50 100 15.00 a. Use the production and price information in the table to calculate nominal GDP for 2011. b. Use the production and price information in the table to calculate real GDP for 2009, 2010, and 2011 using 2009 as the base year. What is the growth rate of real GDP from 2009 to 2010 and from 2010 to 2011?