The CPI inflation rate from 1982 to 2002 is ________ and from 2002 to 2022 is ________. The difference in the rates of inflation is ________. A. 46.9 percent; 33.7 percent; -13.2 percentage points B. 46.9 percent; 33.7 percent; -28.1 percentage points C. 88.4 percent; 50.9 percent; -42.4 percentage points D. 88.4 percent; 50.9 percent; -37.5 percentage point

The CPI inflation rate from 1982 to 2002 is and from 2002 to 2022 is . The difference in the rates of inflation is . A. 46.9 percent; 33.7 percent; -13.2 percentage points B. 46.9 percent; 33.7 percent; -28.1 percentage points C. 88.4 percent; 50.9 percent; -42.4 percentage points D. 88.4 percent; 50.9 percent; -37.5 percentage point

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter17: Inflation

Section: Chapter Questions

Problem 5SQ

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Bob loans his sister-in-law $1000 so she can make her rent. She must pay it back after one year. If Bob charges her 6 percent interest and wants to get a real return (real interest) of 3.5 percent, Bob must anticipate that inflation will be___________ percent over the next year. (Carefully follow all numeric instructions. Enter your answer "as a percent, but without the percentage sign." In other words, if you think Bob predicts 99.99 percent inflation, just enter 99.99 in the blank.)
Officially consumer price inflation occurs when there is Inflation is measured by calculating A) one-time increase in the general price level measured using GDP Deflator; a price level. B) a one-time increase in wages; a price index. C) an increase in the price level measured using CPI; the percentage change in a price index from one year to the next. D) a sustained increase in wages and GDP Deflator; the percentage difference between the price level and a price index.
Which of the following is NOT a step in calculating the inflation rate from one period to the next? Collect the prices from the stores where people shop. O Find out what people typically buy. Measure the change in quality of the products from one period to the other. Find the total value of the basket of goods and services.
Inflation and interest rates a) Define/explain the consumer price index. b) Suppose that the nominal interest rate is 6.5% per year and you borrow $200. How much money will you have to repay in a year? c) Suppose that the nominal interest rate is again 6.5% and inflation is 1%. What is the real interest rate? d) Now suppose that the nominal interest rate is 1% and the inflation rate is 1.5%. What is the real interest rate? Would you like to be a lender or a borrower in this case? Why? Please explain/show how to do the calculations
Ben has $10,000 in his savings account and the bank pays an interest rate of 12 percent a year. The inflation rate is 9 percent a year. The government taxes the interest that Ben earns on his deposit at 20 percent. Calculate the nominal after-tax interest rate and the real after-tax interest rate that Ben earns. >>> 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.
The table below applies to an economy with only two goods -hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs. Year 2009 Hamburgers $5.50 Hot dogs $3.00 Year 2010 Hamburgers $5.50 Hot dogs $3.30 Year 2011 Hamburgers $5.61 Hot dogs $3.63 If the base year is 2009 what is the inflation rate for the economy in 2010 and 2011?
None
Consider a simple economy that only produces: pencils, t-shirts, and bananas. Using the information in the table below, calculate the inflation rate for 2020, as measured by the consumer price index. Product Pencils T-shirts Bananas 1.9% 1.1% O-1.1% 1.5% O-1.9% Quantity 8 15 5 Base year price (2010) $2 $5 $1 Price (2019) $3 $7 $1.50 Price (2020) $3.50 $6.75 $1.75
Suppose that a typical consumer buys the following quantities of three goods and services in 2018 and 2019.Calculate the inflation rate? Commodity Quantity 2010 Unit Price 2018 Unit Price 2019 Unit Price Food 3 units $12.0 $15.0 $18.0 Shelter 2 units $20.0 $30.0 $32.0
If the consumer price index was 100 in the base year and 103 in the following year, then the inflation rate was a. 3 percent. b.-3 percent. c. 1.03 percent. d. 0.3 percent.
Assuming the nominal interest rate is positive, ceteris paribus, which of the following statements is correct? a. If the nominal interest rate is 4 percent and the inflation rate is 3 percent, then the real interest rate is 7 percent. b. When the inflation rate is positive, ceteris paribus, the real interest rate will be less than the nominal interest rate. c. When the inflation rate is zero, ceteris paribus, the nominal interest rate will be less than the real interest rate. d. If the nominal interest rate is 5 percent and the inflation rate is 2 percent, then the real interest rate is -3 percent.
Refer to the table given. If 2010 is the base year, the inflation rate between 2010 and 2011 is percent, and the inflation rate between 2011 and 2012 is percent. Price per unit (TL) 2010 Units purchased 2009 2011 2012 Blueberries Pineapples 8 2.00 2.00 2.10 2.40 2.00 2.50 2.50 3.00 Cheese 3 2.50 3.00 3.50 4.00 3.9: 17.1 7.4; 13.9 10.2; 10.4 6.1; 16.1