c. What is the weakness of CPI inflation? If a price of pork is more expensive while the price of chicken is lower than a price of pork, what will happen?
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c. What is the weakness of CPI inflation? If a price of pork is more expensive while the
price of chicken is lower than a price of pork, what will happen?
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- (a) A "market bundle" for a typical family is deemed to be 5 burgers, 3 Pattie's and 4 pizzas. Compute the CPI for each of the three years, using 1990 as the base year. (b) What was the rate of inflation from 1990 to 2000, using the CPI you calculated in (a).(e) Now suppose that a new market bundle is defined; "the market bundle" is now 6 burgers, 2 patties and 4 pizzas. Compute the CPI for the three years, using this "market bundle" and using 1990 as the base year. (f) what is the new inflation rate from 2000 to 2010, using the CPI you calculated in (e).Use the information below to: a) compute the price index for each year using 2019 as the base year. b) compute the inflation rate between the two years. Item Quantity Unit Price-2018 Unit Price-2019 Coffee 20 pounds $7.00 $8.00 Rent 12 months 950.00 1,000.00 Pizza 100 pizzas 12.00 14.00 Cable 12 months 55.00 60.00 Vacation 2 weeks 550.00 600.00
- Infl. Year CPI Rate 2010 218.1 2011 224.9 3.1% 2012 229.6 2.1% 2013 233.0 1.5% 2014 236.7 ??? 2015 237.0 ??? 2016 240.0 ??? 2017 245.1 ??? a) Calculate the inflation rates for the years 2014-2017. b) Was there disinflation in those years? If so, in which year(s)?Calculate the inflation rate experienced in 2014 and 2015 based on the CPI for each year below: Year CPI (as of December 31 of the year) Inflation rate (%) 2013 124.5 Not applicable for 2013 2014 125.2 ? 2015 127.5 ?In a specified year, nominal gross domestic product grew by 12 percent and real gross domestic product grew by 5 percent.What would be the inflation 7% -7% 8% 179%
- Year | price of meat (per Kg) price of bread (per Kg) price of gas (per lt) housing price (monthly rent of 1 bd unit) $10 $20 S1.5 S1000 $12 S18 S1.5 $1200 Suppose a consumer basket consists of 40 Kg meat, 50 Kg bread, 400 It gas, and a one bedroom apartment for one year. Using the table above, compute the inflation rate in this economy based on CPI between years 1 and 2. 10% 12% 6% 17%You are given information on the consumer price index (CPI), where the values given are those for December 31 of each year. Year CPI 1989 126.1 1990 133.8 1991 137.9 1992 141.9 1993 145.8 a. What was the inflation rate in each year? b. Mary bought a one-year government bond for $400 on Dec. 31, 1991. She received principal and interest totaling $436 on Dec. 31, 1992. What was the nominal interest rate Mary earned on the bond? What was the real interest rate Mary earned on the bond? c. The nominal income of an employee in GM on Dec. 31, 1990 was $60,000. What was his real income? d. The employee's income increased by 2% in 1991. Was the employee better off or worse off at the end of 1991 than the end of 1990? Explain.The following table shows the typical market basket consumed in an economy as well as data on price for years 2001 to 2003. Use this table to calculate the inflation rate between 2001 and 2002. 2003 is the base year. Price in year Price in year Price in Year Items Quantities 2001 2002 2003 Pizza $10 $20 $0.50 $12 $25 $0.55 $11 $26 $1 10 T-shirts 10 Candy 100
- Suppose that before the end of the year a typical consumer purchased 125 apples, 60 bananas, and 85 oranges. Year 1 Year 2 Price of apple Price of banana Price of orange 2$ 0.75 $ 0.90 0.20 $ 0.45 0.25 $ 0.60 What is the inflation rate? (round to nearest whole number)Year Annual inflation rate (%) - Mexico Annual inflation rate (%) - US S(MXN/$) End of year rate 2016 3.4 2.2 20.492 2017 6.8 2.2 19.149 2018 4.8 1.9 20.110 2019 2.8 2.1 19.118 2020 3.2 1.4 19.956 2021 3.4 1.5 19.850 Plot the changes in exchange rates against the difference in inflation rates between Mexico and the United States during the previous five years.Year Quantity of bubble tea Price of bubble tea Quantity of kangaroo steaks Price of kangaroo steaks 20162016 1010 $4dollar sign, 4 55 $8dollar sign, 8 20172017 1210 $6dollar sign, 6 65 $12dollar sign, 12 20182018 1510 $5dollar sign, 5 65 $10 For the above economy where only bubble tea and kangaroo steaks are traded, what is the inflation rate for 2017 using 2016 as a base year? Group of answer choices 100% 75% 180% 150%
