7) In 2010, a bottle of Coke cost $1. In 2020, it would cost $1.50. The CPI for 2020 was 260 and the CPI for 2010 was 220. Which of he following statements is correct? A) The real price of Coke stayed the same. B) The real price of Coke decreased. C) The real price of Coke increased. D) The nominal price of Coke stayed the same.

The table shows the quantities of the goods Suzie bought and the prices she paid during two consecutive weeks. Suzie's CPI market basket contains the goods she bought in Week 1. Calculate the cost of Suzie's CPI market basket in Week 1 and in Week 2. What percentage of the CPI market basket is gasoline? Calculate the value of Suzie's CPI in Week 2 and her inflation rate in week 2. The cost of Suzie's CPI market basket in Week 1 is $ >>> Answer to 2 decimal places. m Week 1 Item Coffee Books Gasoline Week 2 Item Coffee Books Gasoline Concert Quantity 8 cups 1 25 gallons Quantity 8 cups 4 15 gallons 1 ticket Price $4.00 a cup $25.00 each $2.00 a gallon Price $4.00 a cup $12.50 each $2.50 a gallon $95 each

Your salary is currently $95,000.  The CPI last year was 220 and the CPI today is 235.  What should your new salary equal once it is adjusted for inflation?   Question 10 options:   a)  $101,477   b)  $98,921   c)  $96,000   d)  $99, 557

Explain how the Consumer Price Index (CPI) is calculated and critically evaluate its merits as a measure of inflation (approx 250 words)

Commodity substitution bias _______ when the CPI is calculated in 2021 using the 2020 market basket because _______.     A. exists; over time preferences change and people prefer to eat pizza rather than pasta     B. does not exist; pizza and pasta are not substitutes   C. exists; people switch from the relatively more expensive pasta to the relatively less expensive pizza   D. does not exist; the CPI market basket is updated frequently to eliminate substitution bias

Blu-rays CPI basket quantity Bottled water 10 discs $16 per disc $12 per disc $1.00 per bottle $1.25 per bottle 14) If 2009 is the reference base period, what is the price index for the CPI basket of goods for 2015 in the above table? A) 102.8 2009 price 200 bottles 2015 price B) 97.3 C) zero because the price of Blu-rays fell and the price of water increased D) 128.0

1. In Canada, the reference base period for the CPI is 2002. By 2014, prices had risen by 25.2 percent since the base period. The inflation rate in Canada in 2015 was 1.1 percent. Calculate the CPI in Canada in 2015. 2. The base year is 2012. Real GDP in 2012 was $15 trillion. The GDP price index in 2015 was 105, and real GDP in 2015 was $16 trillion. Calculate nominal GDP in 2012 and in 2015 and the percentage increase in nominal GDP from 2012 to 2015.

QUESTION 19 In an imaginary economy, consumers buy only sandwiches and hamburgers. The typical consumer consumes 10 sandwiches and 6 hamburgers. A sandwich cost $3 in 2020 and $5.40 in 2021. A hamburger cost $5 in 2020 and $6 in 2021. Which of the following statements is correct? When 2007 is chosen as the base year, the inflation rate is 50 percent in 2007 O When 2006 is chosen as the base year, the consumer price index is 90 in 2007. O When 2006 is chosen as the base year, the inflation rate is 150 percent in 2007. When 2006 is chosen as the base year, the inflation rate is 5 percent in 2007 When 2007 is chosen as the base year, the consumer price index is 100 in 2006. O O

When Disney's Magic Kingdom in Orlando, Florida, opened in 1971, the price of admission was $3.50 per day. In 2020, the ticket price was $109 per day. Instructions: In parts a and c, enter your responses as a percentage rounded to the nearest whole number. In part b, round your response to two decimal places. a. By how much did the nominal price of a Disney ticket increase from 1971 to 2020? 3014 % b. The CPI index was 40.5 in 1971 and 261 in 2020. What was the 1971 price in 2020 dollars? 22.68 % c. By how much did the real price of a ticket increase from 1971 to 2020? 380 %

What is the effect of the sources of bias on the CPI calculation?     A. Changes in relative prices lead consumers to change the items they buy, and the CPI reflects this substitution.   B. The new goods bias injects a downward bias into the CPI.   C. When faced with higher prices, people use discount stores more frequently and convenience stores less frequently, but the CPI doesn't include this outlet substitution.   D. When the quality of a good improves over time, the CPI doesn't include the portion of the price rise attributable to the higher quality in its calculation.