Table 24-4. Will's expenditures on food for three consecutive years, along with other values, are presented in the following table. Expenditures on food Consumer price index efer to Table 24-4. If the nominal interest rate was 8 percent in Year 2, then a. the real interest rate in Year 2 was 3 percent. Ob. Will's Year 1 food expenditures in Year 3 dollars amount to $6,200. Oc the real interest rate in Year 2 was 4 percent. Od. Will's Year 1 food expenditures in Year 2 dollars amount to $5,800. Year 3 1 2 $5,000 $5,800 $6,600 160.0 168.0 X

Table 24-4. Will's expenditures on food for three consecutive years, along with other values, are presented in the following table. Expenditures on food Consumer price index efer to Table 24-4. If the nominal interest rate was 8 percent in Year 2, then a. the real interest rate in Year 2 was 3 percent. Ob. Will's Year 1 food expenditures in Year 3 dollars amount to $6,200. Oc the real interest rate in Year 2 was 4 percent. Od. Will's Year 1 food expenditures in Year 2 dollars amount to $5,800. Year 3 1 2 $5,000 $5,800 $6,600 160.0 168.0 X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Consider an economy that only produces mittens. In Year 1, 4000 pairs of mittens are produced and the price is $5 per pair. In the Year 2, 5000 pairs of mittens are produced and the price is $7 per pair. In Year 3, 7000 pair of mittens are produced and the price is $9 per pair. Use Year 1 as the base year. What is the nominal GDP for each year? What is the real GDP for each year? What is the GDP deflator for each year? What is the percentage growth rate of real GDP from year 2 to year 3? What is the inflation rate (as measured by the GDP deflator) from year 2 to year 3?
Figure 13-4 Price level LRAS LRAS SRAS, SRAS 112 10 AD AD 110 Real GDP (tritlions of dollars) 121 Refer to Figure 13-4. In the figure above LRAS, and SRAS, denote LRAS and SRAS in year 1, while LRAS, and SRAS, denote LRAS and SRAS in year 2. Given the economy is rate in potentlal GDP in year 22 Select one: Oa 10% O b. 1296 O d. 9.196
Question 21 I NGDP in the base year and RGDP in the current aro equal, then Oa There has been inflation or deflation Ob. There has been deflation only Oc There has been inflation only Od The GDP deflator must be equal to 1
QUESTION 7 Keisha's income was $52,342 in 2011 and $64,983 in 2021. If the CPl rose from 225 to 271 between 2011 and 2021, which of the folowing is true? OA The purchasing power of Keisha's income remained constant between 2011 and 2021. O B. There was deflation between 2011 and 2021. OC The purchasing power of Keisha's income increased between 2011 and 2021. O D. The purchasing power of Keisha's income decreased between 2011 and 2021. O E. Keisha's income in 2011 was equivalent to her income in 2021 because she was able to purchase the same amount of goods and services.
8. If both nominal GDP and the price index are rising, is evident that a) real GP is constant. b) real GDP is rising. c) real GDP is declining.