Thena simple economy, people consume only 3 goods notebooks, calculators, and textbooks. The market basket for purposes of constructing a consumer price index consists of: 10 notebooks, 1 calculator, 10 textbooks. The table below gives the prices of the 3 goods in 2011 and 2012. Assume that the base year is 2011. Price in 2011 Price in 2012 Notebooks Calculators Textbooks $ 7 110 120 $ 1 140 150 (12) a. Fill in the following table . Year Cost of Market Basket Price Index Value 2011 2012 gew hd b. What is the rate of inflation between 2011 and 2012?

Thena simple economy, people consume only 3 goods notebooks, calculators, and textbooks. The market basket for purposes of constructing a consumer price index consists of: 10 notebooks, 1 calculator, 10 textbooks. The table below gives the prices of the 3 goods in 2011 and 2012. Assume that the base year is 2011. Price in 2011 Price in 2012 Notebooks Calculators Textbooks $ 7 110 120 $ 1 140 150 (12) a. Fill in the following table . Year Cost of Market Basket Price Index Value 2011 2012 gew hd b. What is the rate of inflation between 2011 and 2012?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Table 2.5.4 from BEA What categories of consumption expenditures have the highest inflation rate between 2012 and 2021? Are there any categories for which prices are relatively stanle or cheaper?
3. In a small community, breakfast is the most important meal of the day. Therefore, the only two goods that this community produces are coffee and scones in the following amounts: Year 2020 2021 Quantity 60 cups 90 cups Coffee Price $1.25 $1.45 Quantity 45 units 65 units Scones Price $2.10 $3.95 a) Calculate the inflation rate for 2021 using the GDP deflator method (assume that 2020 is the base year for real GDP calculations). Show your work. b) Calculate the inflation rate for 2021 using the CPI method (assume that 2020 is the base year for CPI calculations). Additionally, assume that the consumption basket for both years contains only 10 cups of coffee and 40 scones. Show your work. c) Compare the results of both inflation calculations and explain why they are similar or different based on the two methods and on the specific data used in this example.
Consider the following table, which provides the price of beef and the price of all foods from 2014 to 2022. Price of Price of Relative Year All Food Beef Price 2014 96 98 102.08 2015 97 99 102.06 2016 100 100 2017 103 103 2018 104 105 2019 108 106 2020 111 114 2021 113 116 2022 116 114 The relative price of beef is calculated as: (Price of Beef/Price of all foods) x 100. In 2020, the relative price of beef was close to O 114.16 O 111.10 O 102.70 O 98.27
Using the table below, (See chapter 5 for price index) Price (per unit) Quantity (basket) 20 pounds Item 2018 (year) 2019 (year) Potato $2 $2.5 Onion 40 pounds $3 $3.1 Apple 30 pounds $1 $1.2 9. Compute the cost of the basket in each year. 10. By assuming the base year is 2018, derive price indexes of 2018 and 2019. 11. Using the price indexes from #10, calculate the inflation rate between 2018 and 2019. 12. Let's assume "nominal income" increased 4% between 2018 and 2019. Approximately how much percentage of "real income" did change between 2018 and 2019?
Suppose you have the following information about household expenditure:Year Nominal ($m) Real ($m)2013 145 1302014 150 128Which of the following must be true? Select one: a. Both the price and quantity of goods and services in household expenditure have increased. b. Both the price and quantity of goods and services in household expenditure have decreased. c. The price of goods and services in household expenditure has increased and the quantity has decreased. d. The price of goods and services in household expenditure has decreased and the quantity has increased.
Consider the table below price level 90 100 110 120 130 140 YAD YAS 1100 750 1000 825 900 900 800 975 700 1050 600 1125 what is the price level and the GDP at equilibrium? express as (GDP, price level) Your answer plot the graph for price level vs. GDP
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.
E. The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 shirts and 15 hotdogs. Year Price of a Price of a Shirt Hotdog 2009 $40 $3 2010 $45 $4 2011 $50 $3 1. If the base year is 2009, then the consumer price index was in 2009, 2. in 2010, 3. in 2011. 4. If the base year is 2009, then the economy's inflation rate in 2010 was percent.