same table - using the CPI method, calculate inflation/deflation from 2020 to 2022:CPI MethodP*Q+P*QyearPizza QPizza PShoes Q Shoes P202010$10.007 $125.00202112 $11.0011 $150.00202213 $12.008 $100.00-0.1540○ 0.1540-0.1590○ 0.1590-0.15950.1595Question 4Using the table below, calculate the GDP deflator for 2023yearBurkin Bag Burkin Price NikesNikes Price20193 $ 100.0010 $ 125.0020204 $200.0011 $ 110.00BASE YEAR20212 $ 140.0012 $ 135.0020223 $125.0010 $ 120.0020234 $175.0011 $ 150.00-.1113○ .2914○ .8898○ 1.078○ 1.149

Step 1: Step 2: Step 3: Step 4:

Answered: same table - using the CPI method,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An analyst gathered the following year-end price level data for an economy: 2014 2018 2019 191 207.3 213.8 a. What is the economy's annual inflation rate for 2019? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Inflation rate % b. What is the average compounded inflation rate for 2014-2019? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Average rate %
SECTION BREAK - Answer All Part Questions Nominal GDP (in sbillion) $600 648 701 755 Year 2019 2020 2021 O c. 2022 Refer to the information above to answer this question. What is the value of the GDP deflator in 2020? O a. 100.0 O b. 103.0 104.6 O d. 108.2 Real GDP (in sbillion) $600 629 658 699
1. The price of an item in 2004 was $1.3. Use an inflation rate of 4% to calculate its price in 2030.
Assume that the base year is 2015. Good 2015 Price 2015 Quantity 2016 Price 2016 Quantity $2 250 $3 200 $3 300 $2 400 $4 400 $5 500 A B C 9. What was the inflation rate between the two years? O A) 1 percent O B) 2 percent O C) 3 percent O D) 4 percent O E) 8 percent 27
Estimate inflation based on the following data: Round your answer to the nearest basis point (0.0001). Food Housing Education Healthcare Other Index 2021 156 153 201 126 124 Index 2022 122 179 256 147 132 Weight 30% 25% 20% 10% 15%
Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) 2020 2021 2022 Beginning inventory $1,900 $2,200 $2,400 Ending inventory 2,200 2,400 2,500 Cost of goods sold 18,040 20,010 19,600 Sales revenue 41,000 42,300 42,240
In 2020, price index is 135.4 and in 2021 price index is 145.2.What is the inflation rate? Select one: a. 107.24% b. -6.75% c. 7.24% d. 9.80%
1. Sum-of-the-years for 2020 and 2021: 2. Double-declining-balance (twice the straight-line rate) for 2020 and 2021:
Assume the CPI increases from 139.2 to 142.6 over the period. What is the inflation rate implied by this CPI change over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Inflation in log is 5.0430853%. If the last year’s price level was 610, what is this year’s price level?
How does it change from year 1 to year 2? Answer: Real spending is 10 year-1 dollar in year 1, and 20 year-1 dollar in year 2. d. Defining the implicit price deflator as nominal spending divided by real spending, compute the deflator for each year. How does the deflator change from year 1 to year 2? Answer: The implicit price deflator is 1 in year 1, and 0.5 in year 2. Inflation is -50%. E. Suppose that Abby is equally happy eating red or green apples. How much has the true cost of living increased for Abby? Compare this answer to your answers to parts (a) and (d). What does this example tell you about Laspeyres and Paasche price indexes?
Refer to the following closing prices of USDTWC and XYZUSD. Compute for the corresponding %MTD change for currency XYZ against USD. Date USDTWC XYZUSD 1.800 1.650 1.600 1.250 1.200 1.300 12/31/2020 100.000 1/29/2021 2/1/2021 97.800 97.400 2/26/2021 3/1/2021 96.200 95.500 TODAY 94.750 XYZ appreciated against USD by 8.33% O XYZ appreciated against USD by 4.00% O XYZ depreciated against USD by 8.33% O XYZ depreciated against USD by 4.00% ASSUMING ALL ELSE EQUAL - according to the survey conducted by the Bangko Sentral ng Pilipinas, 49 out of 56 Philippine-based banks expect that the PHP will remain strong against the USD until the end of the year. SOLELY BASED ON THIS INFORMATION, which of the following statement is accurate? O The PHP is already expensive, hence it is due for a correction in the medium-term. The PHP will continue to appreciate against USD given the positive market expectations on the currency. The PHP is not affected by survey results since it is the demand and the…

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