The Bureau of Labor Statistics has found that the base-year expenditures of the typical consumer break down as follows: Food and beverages Housing Apparel and upkeep Transportation Medical care Entertainment Other goods, and services Total 17.8% 42.8% 6.3% 17.2% 5.7% 4.4% 5.8% 100.0% Suppose that since the base year, the prices of food and beverages have increased by 2 percent, the price of housing has increased by 4 percent, and the price of medical care has increased by 6 percent. Other prices are unchanged. Instructions: Enter your responses by rounding the CPI to three decimal places. The CPI for the current year is

The Bureau of Labor Statistics has found that the base-year expenditures of the typical consumer break down as follows: Food and beverages Housing Apparel and upkeep Transportation Medical care Entertainment Other goods, and services Total 17.8% 42.8% 6.3% 17.2% 5.7% 4.4% 5.8% 100.0% Suppose that since the base year, the prices of food and beverages have increased by 2 percent, the price of housing has increased by 4 percent, and the price of medical care has increased by 6 percent. Other prices are unchanged. Instructions: Enter your responses by rounding the CPI to three decimal places. The CPI for the current year is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Calculate APC when consumption is $210 and the income is $500
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The next five questions involve the following situation: Consider an economy with only three consumption goods: cocaine, silver, and Doge memes.' The following table shows prices for 2017-2020. Use 2017 as the base year for any relevant calculations. Based on a 2017 survey, the typical consumer has an annual consumption of 20g of cocaine, 10 oz of silver, and 1,000 memes. Year Price of Cocaine (g) Price of Silver (oz) Price of a Meme 2017 $150 $17 $1 2018 $150 $16 $5 2019 $120 $16 $10 2020 $200 $28 $100 18. What is the CPI for 2017? (А) 100. (В) 196. (C) 301. (D) 2501. 19. What is the CPI for 2020? (А) 100. (В) 196. (C) 301. (D) 2501. 20. Based on these data and their associated Consumer Price Indices, what is the inflation rate from 2018 to 2020? (A) 2,501%. (В) 731%. (C) 100%. (D) 1,176%. 'Doge Coin to the moon.