Q7. Suppose that your annual income (nominal) in year 1 is $45,000, and in year 2 is $51,232. If the CPI in year 1 is 143.6, and in year 2 is 150.7, a) Has your real income increased, decreased, or remain unchanged? Explain your answer. b) What is the inflation rate between the two years?
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- Suppose the CPI in year 1 is 137. Given that the inflation rate is 0.3% in year 2 and 4.2% in year 3, how much does it cost at the end of year 3 to purchase the same goods and services that cost 260 at the beginning of year 1.132.) You decide to lend your sister, who has never defaulted on a loan (ie. ρd =0), $1000 for one year. At the end of the year, she pays you $1050. Suppose you expected the inflation rate, πe, to be 3%. However, at the end of the year, you learn that the inflation rate was actually 6%. What was the realrate of interest that you expected to receive? Are you better or worse off than expected? 2%; worse 2%; better 1%; worse 1%; betterSuppose the nominal median household income for a family of four in the United States was $24,618.00 in 1985, $36,678.00 in 1995, $50,326.00 in 2005, and $53,276.00 in 2010.You will need to know that the CPI (multiplied by 100, 1982–1984 = 100) was 108.6 in 1985, 153.4 in 1995, 196.3 in 2005, and 219.1 in 2010.Instructions: Enter your responses rounded to two decimal places. Year Real Income 1985 $ 1995 $ 2005 $ 2010 $ Between 1985 and 2005, the real median household income (Click to select) rose declined stayed constant . Between 2005 and 2010, the real median household income (Click to select) rose declined stayed constant . rev: 01_31_2019_QC_CS-155719
- Suppose the nominal median household income for a family of four in the United States was $24,618.00 in 1985, $36,678.00 in 1995, $50,326.00 in 2005, and $53,276.00 in 2010.You will need to know that the CPI (multiplied by 100, 1982–1984 = 100) was 108.6 in 1985, 153.4 in 1995, 196.3 in 2005, and 219.1 in 2010.Instructions: Enter your responses rounded to two decimal places. Year Real Income 1985 $ 1995 $ 2005 $ 2010 $ Between 1985 and 2005, the real median household income (Click to select) rose declined stayed constant . Between 2005 and 2010, the real median household income (Click to select) .A consumer expenditure survey reports the following information on consumer spending: 2020 2021 Price Quantity Price Quantity Product (1) $10 7 $10 7 Product (2) $6 10 $8 12 Product (3) $12 5 $14 10 a) Using 2020 as the base year, by how much does a "cost of products" index increase between 2020 and 2021? b) Calculate the inflation rate between 2020 and 2021, using the CPI you calculated in (a)The monthly market basket for consumers consists of pizza, t-shirts, and rent. The table below shows market basket quantities and prices for the base year (Year 1) and in the following two years. The inflation rate between Year 1 and Year 2 is The inflation rate between Year 2 and Year 3 is Product Pizza T-Shirts Rent Base Year (Year 1) Quantity 15 3 1 Price in the Base Year % (Round both answers to one decimal place.) %. $2.50 $15.00 $450.00 Price in Year 2 $3.13 $13.50 $495.00 Price in Year 3 $3.75 $15.00 $585.00
- Question 11 of 25, Step 1 of 1 T A basket of goods and services is used to calculate the consumer price index (CPI) in Country A. The weight of food and beverages is 10% of the whole basket. The average household's budget on food and beverages was $7,500 in 2010 (base year) and increased by $500 in 2015. Assuming the increase in the rate of spending on food and beverages matched the inflation rate, calculate the inflation rate between 2010 and 2015. Round your answer to two decimal places if necessary.The CPI (using a 2000 base year) for 1965 is 26.0. Suppose a household's annual take-home pay in 1965 was $8,320. What would be an equivalent take-home pay in 2000?Assume that a market basket necessary for consumption by a typical household in the economy consists of 300 sandwiches and 3 iPads. In year 2017 the price for one sandwich was $4, and the price of one iPad was $150. In year 2018, the price for one sandwich was $5, and the price of one iPad was $200. Assume that for our analysis we consider year 2017 as the base year. What is the rate of inflation from year 2017 to year 2018? a) 127.27% b) 27.27% c) 20% d) 75%
- Last year the jones family earned $40,000. This year their income is $42,000. If the inflation rate was 10%, did the jones family experience an increase/decrease/no change in their Normal income? Did the jones family experience an increase/decrease/no change in the real income ?For country A: CPI March 2021 is 523.5, and CPI April 2021 is 532.5. For country B: CPI March 2021 is 264.8, and CPI April 2021 is 266.8. We can say that The inflation rate in April was 1.7% in country A and 0.8% in country B. In April country A has a higher inflation rate than country B because the CPI increased by 9 points for country A and CPI increased by 2 points in country B. The overall price level in country A is approximately twice the overall price level in country B, because country A's CPI is almost two times the CPI of country B. In both March and April country A has a higher inflation rate than country B because for both months CPI is country A is higher than the CPI in country B.Suppose, in the base year, a typical market basket purchased by an urban family costs $250. In Year 1, the same market basket cost $950. What is the consumer price index (CPI) for Year 1? If the same market basket costs $1000 in Year 2, what is the CPI for Year 2? What was the Year 2 rate of inflation?
