The market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts and 2 pants. In 2001 bread cost $1.00 per loaf, milk cost $1.50 per gallon,shirts cost $6.00 each and pants cost $10.00 per pair. In 2002 bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost $7.00 each and pants cost $12.00 per pair. What wasthe inflation rate, as measured by the CPI, for Aquilonia between 2001 and 2002?O a. It is impossible to determine without knowing the base year.O b. 21.6 percentO C 24.4 percentd. 30 percentWhich of the following statements is correct?O a. GDP at factor cost = Net price increase + direct taxO b. GDP at factor cost = Net Value Addition + DepreciationO c.GDP at factor cost = Net price increase + indirect taxO d. GDP at factor cost = Net Value Addition - Depreciation

[Dear student , as you have posted multiple questions , we are supposed to do only the first…

Answered: The market basket used to calculate the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

One difference between the CPI and the GDP deflator is CPI uses a fixed basket, Deflator uses current production quantities CPI use current production quantities, Deflator uses a fixed basket of goods CPI measures price changes for consumer goods only, GDP deflator measures price changes for producer goods only CPI excludes imported goods while the deflator does not
Between last year and this year, the CPI in Blueland rose from 100 to 106 and the CPI in Redland rose from 100 to 103. Blueland's currency unit, the blue, was worth $0.75 (U.S.) last year and is worth $0.60 (U.S.) this year. Redland's currency unit, the red, was worth $0.25 (U.S.) last year and is worth $0.20 (U.S.) this year. Consider Blueland as the home country. a. Calculate Blueland's nominal exchange rate with Redland. Instructions: Enter your response rounded to one decimal place. 3.1 red/blue 2.9 red/blue Last year: This year: The percentage change in Blueland's nominal exchange rate from last year to this year is: Instructions: Enter your response as a whole number. Be certain to enter "0" if required. 0 %
The market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts and 2 pants. In 2001 bread cost $1.00 per loaf, milk cost $1.50 per gallon, shirts cost $6.00 each and pants cost $10.00 per pair. In 2002 bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost $7.00 each and pants cost $12.00 per pair. What was the inflation rate, as measured by the CPI, for Aquilonia between 2001 and 2002? a. 24.4 percent b. 21.6 percent c. It is impossible to determine without knowing the base year. d. 30 percent
The table below gives the CPI and the price of gasoline per gallon in the fictitious country "Alpha" between 2010 and 2015. For each year find the percent change in the price of gasoline from the previous year's price, the CPI inflation rate, and the change in the relative price of gasoline. Instructions: Enter your responses rounded to two decimal places for change in gasoline price and inflation, and one decimal place for percent values in the relative price change. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Year 2010 2011 2012 2013 2014 2015 Gasoline price ($/gallon) $ 2.25 $ 2.35 $ 2.49 $ 2.60 $ 2.72 $ 2.86 Percent change in gasoline price 4.44 % 5.95 % 4.41 % 4.61 % 5.14 % CPI 2.25 2.28 2.34 2.38 2.42 2.70 Inflation % % % % % Change in relative price of gasoline % % % %
A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth. In 2015, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent $27 on juice and $20 on cloth. The price of juice in 2015 was $3 a bottle, and the price of cloth was $5 a yard. In 2016, juice is $5 a bottle and cloth is $4 a yard. Calculate the CPI in 2016 and the inflation rate between 2015 and 2016. The CPI in 2016 is >>> Answer to 1 decimal place. The inflation rate between 2015 and 2016 is percent. >>> 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 cost of a gallon of gasoline was $0.57 in 1975. If the cost of gasoline grew with inflation what would the cost be in 2021? How does this compare this to the actual cost of gasoline in 2021? Explain your answer using a meaningful sentence. CPI in 1975 was 53.8 CPI in 2021 was 270.97
Which of the following statements about the CPI is true? How does the PCEPI differ from the CPI? The CPI _______. A. has a bias of approximately 2.0 percentage points a year B. is a measure of the change in the amount of money that people need to spend to achieve a given standard of living C. measures all the changes in the cost of living D. is a relatively useless measure because every year new goods become available and some old goods disappear The PCEPI _______. A. uses the same market basket as the CPI but gives a greater weight to sticky-price items B. introduces even more biases into the inflation rate than the CPI C. excludes the prices of food and energy D. uses the prices of goods and services included in the consumption expenditure component of GDP
Suppose a basket of goods and services has been selected to calculate the CPI and 2016 has been selected as the base year. In 2014, the basket's cost was $50; in 2016, the basket's cost was $52; and in 2018, the basket's cost was $58. The value of the CPI in 2018 was ☀+ F6 106.0 104.0 111.5 6 116.0 Question 16 9 F7 Y K F8 & 7 U Q Search F9 * 8 F10 ( 9 F11 O ☆ F12 ) 0 10 pts Home End P + 11 Insert
The following table shows a hypothetical situation for an economy that uses for an average household of four people a basket of only three products to calculate the consumer price index (CPI) between the years 2015 and 2018. Product Product A 20 Product B Product C 98 100 131 133 50 2015 4 Quantity Price $50 $52 $56 $100 55 $105 61 $113 $1,200 5 $1,210 5 $1,230 If the base year is 2015, what is the value of the consumer price index in 2015? (round to the closest integer) a 22 2016 P Q 23 2017 P Q $55 $111 $1,225 22 62 2018 5 P
A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth. In 2015, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent $20 on juice and $12 on doth The price of juice in 2015 was $2 a bottle, and the price of doth was 54 a yard. In 2016, juice is $6 a bottle and cloth is $3 a yard Calculate the CPI in 2016 and the inflation rate between 2015 and 2016. The CPI in 2016 is >> Answer to 1 decimal place.

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS