EBK MACROECONOMICS
7th Edition
ISBN: 8220106812686
Author: O'Brien
Publisher: PEARSON
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Question
Chapter 13, Problem 13.2RDE
Sub part (a):
To determine
The effects of a positive supply shock.
Sub part (b):
To determine
The average inflation rate.
Sub part (c):
To determine
The effects of a positive supply shock.
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Explain what is the relationship between the consumer price index and the inflation rate.
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Week 3 Homework
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3 Homework G)
The following table gives the the value of the consumer price index for 2007 through 2015.
Consumer Price Index Percentage Increase
Year
207.3
2007
215.3
2008
214.5
2009
218.1
2010
224.9
2011
2012
229.6
233.0
2013
236.7
2014
237.0
2015
Instructions: To answer the following questions, complete the percentage increase column in the
rounded to two decimal places and include a negative sign ) where appropriate.
a) What was the inflation rate in 2009?
b) What was the percentage increase of the average price level from 2008 to 2015?
9%
inflation was lowest in (Click to select)
c) Inflation was highest in (Click to select)
10 of 15
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The following table shows the average nominal interest rates on six-month Treasury bills between
2004 and 2008, which determined the nominal interest rate that the U.S. government paid when it
issued debt in those years. The table also shows the inflation rate for the years 2004 to 2008. (All
rates are rounded to the nearest tenth of a percent.)
Year
2004
INTEREST RATE (Percent)
2006
2007
2008
5.0
3.0
Source: "FRED Economic Data," Federal Reserve Bank of St. Louis, last modified
September 23, 2019, accessed September 24, 2019, https://fred.stlouisfed.org.
On the following graph, use the orange points (square symbol) to plot the nominal interest rates
for the years 2004 to 2008. Next, use the green points (triangle symbol) to plot the real interest
rates for those years.
28
1.0
2005
-16
-40
-40
Nominal Interest Rate Inflation Rate
(Percent)
1.6
2003
3.4
4.8
4.4
1.6
2004
2005
2006
2007
2008
(Percent)
27
3.4
3.2
2.9
3.8
2006
YEAR
Nominal Interest Rate
Real Interest Rate
(?)
According to…
Chapter 13 Solutions
EBK MACROECONOMICS
Ch. 13 - Prob. 13.1.1RQCh. 13 - Prob. 13.1.2RQCh. 13 - Prob. 13.1.3RQCh. 13 - Prob. 13.1.4PACh. 13 - Prob. 13.1.5PACh. 13 - Prob. 13.1.6PACh. 13 - Prob. 13.1.7PACh. 13 - Prob. 13.1.8PACh. 13 - Prob. 13.1.9PACh. 13 - Prob. 13.1.10PA
Ch. 13 - Prob. 13.2.1RQCh. 13 - Prob. 13.2.2RQCh. 13 - Prob. 13.2.4RQCh. 13 - Prob. 13.2.5RQCh. 13 - Prob. 13.2.6PACh. 13 - Prob. 13.2.7PACh. 13 - Prob. 13.2.8PACh. 13 - Prob. 13.2.9PACh. 13 - An article in the Economist noted that the...Ch. 13 - Prob. 13.2.11PACh. 13 - Prob. 13.2.12PACh. 13 - Prob. 13.2.13PACh. 13 - Prob. 13.2.14PACh. 13 - Prob. 13.2.15PACh. 13 - Prob. 13.3.1RQCh. 13 - Prob. 13.3.2RQCh. 13 - Prob. 13.3.3RQCh. 13 - Prob. 13.3.4PACh. 13 - Prob. 13.3.5PACh. 13 - Prob. 13.3.6PACh. 13 - Prob. 13.3.7PACh. 13 - Prob. 13.3.8PACh. 13 - Prob. 13.3.9PACh. 13 - Prob. 13.3.10PACh. 13 - Prob. 13.4.1RQCh. 13 - Prob. 13.4.2RQCh. 13 - Prob. 13.4.3RQCh. 13 - Prob. 13.4.4PACh. 13 - Prob. 13.4.5PACh. 13 - Prob. 13.4.6PACh. 13 - Prob. 13.4.7PACh. 13 - Prob. 13.4.8PACh. 13 - Prob. 13.4.9PACh. 13 - Prob. 13.4.10PACh. 13 - Prob. 13.2RDECh. 13 - Prob. 13.1CTECh. 13 - Prob. 13.2CTE
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