What is microeconomics How does inflation help in the redistribution of income? A) Disproportional change in prices B) Proportional changes in prices C) Falling prices D) Rising prices
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- Why there are sudden inflation in agricultural commodities like onions or shallots?What is meant by a “market basket rate”?Use the line drawing tool to draw a line representing a possible efficiency wage. Be sure that this line intersects both the supply 'NS' and demand 'ND" lines for labor. Label this new line 'Efficiency Wage'. Real Wage, w Labor supply, NS The efficiency wage is likely to result in a V of labor. Labor demand, ND* Labor, N
- Calculate the real priceConsumer Price Index (CPI) or Retail Price Index (RPI) which is a better measure of Inflation for supermarkets?a) Refer to the above diagram determine the number of unemployed, if thegovernment imposes a minimum wage of $8? (Show on the graph!) b) Discuss the result of a decrease in minimum wage that kept it above theequilibrium wage.
- 1. Calculating inflation using a simple price index Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket's total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Quantity in Basket 1 150 10 8 40 Suppose this price index uses 2020 as the base year. Price (Dollars) 64 2 Between 2020 and 2021, the UPI increased by 80 2 2020 3 Cost (Dollars) 64 300 800 16 120 1,300 100 Price (Dollars) 104 2 85 2 4 2021 Cost (Dollars) In the last row of the table, calculate and enter the value of the UPI for the remaining years. 104 300 850 16 160 1,430 110 10% Between 2021…How does an increase in the minimum wage affect employment in the short run according to conventional economic theory? A. Increases employment B. Decreases employment C. Has no effect on employment D. Depends on other factorsWhat is the cost of the market basket for 2011, 2012, 2013