Consumer Price Index (CPI), and InflationUse the data below to answer questions 1 and 2:2021Base year20222023100 Loaves of bread$1.75$2.30$3.7550 sticks of butter$4.80$5.90$7.151. Calculate CPI for each year.2021: CPI2022: CPI2023: CPI2. CPI in 2022 = 288.35, and in 2024 = 313.55;calculate the inflation rate between 2022 and 2024.

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Answered: Consumer Price Index (CPI), and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the CPI in the Year 2019 is 100. In 2019 consumers spent 50% of their income on food, 20% on shelter and 30% on education. Now if the prices of food and education fall by 10% in 2020, calculate the CPI and Rate of Inflation for the year 2020.
Price (2011) Quantity (2012) $5.00 $6.00 Item Quantity (2011) Price (2012) Magazines 450 200 $4.50 $8.00 $10.50 400 Movie tickets 50 Pizzas 100 $10.00 120 The data in the table above shows the consumption by families in an economy. The year 2011 is the reference base period. Based on the table above, the CPI for 2012 is A. 105.1. B. 5.0 percent. C. 102.5. O D. 100. O E. 98.5.
The following table shows a person's nominal and real wages for three years, as well as the price level (price index) for each year, using the first year as the base year. Fill in the blanks in the table. Then calculate the annual inflation rate for each year (not including the base year). Instructions: Round your answers to 2 decimal places. Nominal Wage ($) Real Wage ($) Inflation Rate (%) Year Price Level 1 7.00 140 5.00 2. 9.00 7.00 150.00 3 11 160.00 7.50
Consider the following data on Prices and Quantities of T-Shirts and Pajamas. Year Price of T-Shirts Quantity of T-Shirts Price of Pajamas Quantity of Pajamas 2015 $10 120 $12 200 2016 $12 300 $15 200 2017 $14 275 $18 180 Was the growth rate of real GDP higher or lower that the growth rate of nominal GDP? Explain. Using 2015 as the base year, calculate the CPI for each year Calculate the inflation rate for 2015, 2016 and 2017.
The table below presents some data on the federal minimum wage and the CPI for several years. Fill in the column for “minimum wage in 2020 $s." Year Minimum wage CPI Minimum wage in 2020 $s 1949 $0.40 23.8 1968 $1.60 34.8 1995 $4.25 152.4 2020 $7.25 259.1 2024 (proposed) $15 306 (projected) What was the 1949 minimum wage equivalent to in 2020 $s?
Using the Consumer Price Index (CPI) detailed in the table below, Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 CPI 130.7 136.2 140.3 144.5 148.2 152.4 156.9 160.5 163.0 166.6 172.2 177.1 179.7 184.0 188.9 Instructions: Round your responses to one decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Calculate the inflation rate for 2007-2008: 2008-2009: 2014-2015: 2015-2016: Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % % % % CPI 195.3 201.6 207.3 215.3 214.5 218.1 224.9 229.6 233.0 236.7 237.0 240.0 245.1 251.1 255.7 b, c. Which years had inflation? Which years had deflation? In 2007-2008, there was (Click to select) ✓ In 2008-2009, there was (Click to select)
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Here are some recent data on the US consumer price index: Year CPI Year CPI Year CPI 2016 240.0 2011 224.9 2006 201.6 2015 237.0 2010 218.1 2005 195.3 2014 236.7 2009 214.5 2004 188.9 2013 233.0 2008 215.3 2003 184.0 2012 229.6 2007 207.3 2002 179.9 Compute the inflation rate of each year 2003-2016 and determine which were years of inflation. In which years did deflation occur? In which years did disinflation occur? Was there hyperinflation in any year?
The base year is 2010. If the CPI today is 199, what does this mean about consumer prices? A) They have increased by 199% since 2010 B) They have increased by 99% since 2010 C) They have decreased by 199% since 2010. D) They have decreased by 99% since 2010
Suppose the current CPI is 252 and in 2005 it was 196. A pair of Levi’s jeans costs $43 today. Based on the CPIs, what would you expect the 2005 price to have been for the same style of Levis, in a similar retail outlet?
The following table pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Price of a Toy (Dollars per toy) Price of Meat Year (Dollars per pound) 3 1 4 1 2 3 Refer to Table 25-2. If the base year is Year 1, then the CPI in Year 2 was 88.9. 90. 100. 2 7 5 112.5.
Calculate the GDP deflator and the rate of inflation for each year: (€ million) Nominal GDP Real GDP 2013 3,540,000 2,900,000 2014 4,730,000 3,250.000 2015 5,110,000 4,800,200

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