The cost of a NYC studio apartment was $1,200 in the year 2000. By 2022 the same apartment would rent for $2,000. Can we conclude from this data that rent has increased in NYC by 66.7% ? Yes, the inflation rate is 66.7% No, we cannot meaningfully compare nominal values through different points in time. Yes, the apartment is obviously more expensive No, we have not accounted for impovements in the quality of the apartment

Inflation rate is the rate at which the average general price level of goods and services rises over…

Answered: The cost of a NYC studio apartment was…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The cost of a NYC studio apartment was $1,200 in the year 2000. By 2022 the same apartment would rent for $2,000. Can we conclude from this data that rent has increased in NYC by 66.7% ?

		Yes, the inflation rate is 66.7%
		No, we cannot meaningfully compare nominal values through different points in time.
		Yes, the apartment is obviously more expensive
		No, we have not accounted for impovements in the quality of the apartment

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