Year199619971998CPI1571611632.) Refer to table above. Consider the following values of the consumer price index for 1996, 1997, and 1998: The inflation rate for1997 was equal to?3.) The substitution bias in the consumer price index refers to the idea that consumersin response to price, and the CPI does not reflect this andA) change; overestimatesB) change; underestimatesC) do not change; overestimatesD) do not change; underestimatesthe quantity of products they buythe cost of the market basket.

The first part of the question is asking for the inflation rate for 1997. The inflation rate is…

Answered: Year 1996 1997 1998 CPI 157 161 163 2.)…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 4.9P

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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.
* Constant or real dollars are terms describing income after adjustment for inflation. Following chart outlines Zara's (parent company Inditex) annual revenue between 2007 - 2021: Based on the revenue and consumer price index outlined, calculate Zara's 2021 revenue in 2007 real dollars. Year Average CPI Sales in Billion US Dollars 2007 207.34 12.93 2008 215.25 15.11 2009 214.56 15.55 2010 218.08 16.64 2011 224.92 18.94 2012 229.59 20.51 2013 232.95 22.38 2014 236.72 23.75 2015 237.00 23.20 2016 240.01 25.45 2017 245.12 28.91 2018 251.10 30.81 2019 255.65 31.54 2020 258.85 23.55 2021 270.97 31.76 22.74 Billion USD 41.5 Billion USD 31.76 Billion USD 24.3 Billion USD 9.89 Billion USD
This table indicates the historical level of the Consumer Price Index (CPI) for the United States for 1921, 1922, and 1923. Complete the table by (1) selecting the inflation rates for 1922 and 1923, and (2) indicating for each year whether there has been inflation, deflation, or hyperinflation. Year CPI Inflation Rate Change in Price Level 1921 17.9 — — 1922 16.8 1923 17.1 What rates of inflation for 1924 would be consistent with disinflation between 1923 and 1924? Check all that apply. 1.7% 11.8% 51.8% 1.8% What rates of inflation for 1924 would be consistent with hyperinflation? Check all that apply. 15.0% -1.8% 100.0% 120.0%
The following graph shows the approximate value of the U.s. Consumer Price Index (CPI) from September 2004 through November 2005. CPI Sep 2004–Nov 2005 I(t) 202 200 198 196 194 192 190 + 188 →t 14 4 8 10 12 Sep-04 Jan-05 Nov-05 The approximating curve shown on the figure is given by I(t) = -0.005t³ + 0.12t2 – 0.01t + 190 (0 sts 14), where t is time in months since the start of September 2004. (a) Use the model to estimate the monthly inflation rate in January 2005 (t = 4). Recall that the inflation rate is I'(t) (Round your answer to three decimal places.) I(t) % (b) Was inflation slowing or speeding up in January 2005? O slowing down O speeding up (c) When was inflation speeding up? When was inflation slowing? (Use the model to determine this.) Inflation was speeding up prior to --Select--- v 2005 and slowing after --Select--- v 2005.
Shows the fruit prices that the typical college student purchased from 2001 to 2004. What is the amount spent each year on the “basket” of fruit with the quantities shown in column 2? 2. Construct the price index for a “fruit basket” in each year using 2003 as the base year. 3. Compute the inflation rate for fruit prices from 2001 to 2004.

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