Same table, what is inflation/deflation from 2019 to 2021 using the Deflator method?yearBurkin Bag Burkin Price Nikes20193 $100.00Nikes Price10 $ 125.0020204 $200.0011 $ 110.00BASE YEAR20212 $140.0012 $ 135.0020223 $125.0010 $ 120.0020234 $175.0011 $ 150.00O.1243O.1373O.1419○ .1528○ .1695Question 6using the same table, what is deflation/inflation from 2021 to 2022 using the deflator method?yearBurkin Bag Burkin Price NikesNikes Price20193 $ 100.0010 $ 125.0020204 $ 200.0011 $ 110.00BASE YEAR20212 $140.0012 $ 135.0020223 $ 125.0010 $ 120.0020234 $175.0011 $ 150.00О-.0745○ -.0894○ -.0973O -10.17O-1102

Remember the formulas:Nominal GDP = Units of output x price per unitReal GDP = Units of output x…

Answered: Same table, what is inflation/deflation…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 3.7P

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Similar questions

The index number representing the price level changes from 110 to 115 in one year and then from 115 to 120 the next year. Since the index number increases by five each year, is five inflation rate each year? Is the inflation rate the same each year? Explain your answer.
Compute the inflation rate for fruit prices from 2001 to 2004.
The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1=940, year 2=970, year 3=1000, and year 4=1070. Calculate two price indices, one using year 1 as the base year (set equal to 100) and the other using year 4 as the base year (set equal to 100). Then, calculate the inflation rate based on the first price index. If you had used the other price index, would you get a different inflation rate? If you are unsure, do the calculation and find out.
A fixed-rate mortgage has the same interest rate over the life of the loan, whether the mortgage is for 15 or 30 years. By contrast, an adjustable-rate mortgage changes with market interest rates over the life of the mortgage. If inflation falls unexpectedly by 3, what would likely happen to a homeowner with an adjustable-rate mortgage?
With in 1 or 2 percentage points, what has the U.S. inflation rate been during the last 20 years? Draw a graph to show the data.
Why do you mink the U.S. experience with inflation over the last 50 years has been so much milder than in many other countries?
What is the month-over-month rate of inflation in May? If applicable, April is the reference period, round to two decimal places, and omit dollar or percentage signs from your answer. Month QA PA QB PB Qc Pc April 4 $0.63 May 4 $0.58 June 4 $0.64 444 $0.55 10 $0.62 $0.74 10 $0.72 4 $0.67 10 $0.78
Suppose you lent money to a friend a few years ago at a nominal interest rate of 6%. At the time ot he loan, you expected the annual inflation rate to be 2%, but the actual annual inflation rate was 1.2%. When the loan originated, you expected to earn a real return of but due to unexpected disinflation, you earned an actual real return of A. 2%; 1.2% OB. 4.8%; 6% C. 6%; 4.8% D. 4%; 4.8%
2a. Compute the price index for each year. Use the first year as the base year. What was the inflationrate between the two years.Item Quantity Unit Price-Last Year Unit Price-This YearCoffee 20 pounds $3.00 $4.00Tuition 1 year 4,000.00 7,000.00Pizza 100 pizzas 8.00 10.00VCR rental 75 days 15.00 10.00Vacation 2 weeks 300.00 500.00
Table 2 Price per Unit in 2005 $2.00 $2.00 Units Purchased 2007 2008 Blueberries 9007 $2.10 $2.40 $2.50 $3.00 %243.50 $4.00 8. Pincapples Cheese 007$ $42.50 $3.00 $2.50 7. Refer to Table 2. The lowest inflation rate is between the years 2005 and 2006. cannot be determined from the given information 2006 and 2007. 2007 and 2008.
The average annual cost(tuition, fees, and room and board) at four-year private universities rose from $6,070in 1980 to $29,257 in 2004. Calculate the percentage rise in cost from 1980 to2004, and compare it to the overall rate of inflation as measured by the Consumer Price Index. The Consumer Price Index for 1980 is82.6and the Consumer Price index for 2004 is 188.9.The percentage rise in cost from 1980 to 2004 is %??(Round to the nearest tenth as needed.)
9.2 Find the real amounts (with today as the base year) corresponding to the current amounts shown below for a 4 percent inflation rate. a. $400 three years from now b. $400 three years ago c. $10 next vear d. $350 983 in 10 years from now e. £l one thousand years ago f. $1 000 000 000 three hundred years from now

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