Answered: If the price level increased from 120…

If the price level increased from 120 to 142, then what was the inflation rate? 1.2 percent 0.8 percent 18.3 percent 22.0 percent

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Consider the following information regarding a basket of goods and services for a typical household:…

A: Formula for Inflation Rate:Consumer Price Index(CPI) in 2019 = Total Expenditure in 2019 Consumer…

Q: Find the time it would take for the general level of prices in the economy to double at an average…

A: The price level in an economy rises sharply which erodes the purchasing power per unit of money…

Q: If the price of a good is $200 in 2015 and $204 in 2019, what is the inflation rate? A) 22% B) 20%…

A: Given data: Price of good is $200 in 2005 And price in 2019 is $204

Q: ma) What is the average inflation over two years if f1=10%, and f2=- 10%.

A: Inflation is the rate of increase in prices over a given period of time. Here, we calculate the…

Q: Suppose Becky is an avid reader and buys only comic books. Becky deposits $3,000 in a bank account…

A: When the money is not deposited yet. The price of the comic book is 15. The purchasing power of…

Q: If the Consumer Price Index was 90 in one year and 100 in the following year, then the rate of…

A: Inflation is the general increase in price level.There are different levels of inflation.Inflation…

Q: According to the price index, it costs 200 dollars to buy a typical basket of goods in one year.…

A: 220-200/200*100 20/200*100=10

Q: If median weekly earnings of $865 were to increase by 9%. at a time when the inflation rate were to…

A: given that, median weekly earnings of $865 increase by 9% the inflation rate was to drop by 4%

Q: Consider the following price information: Year 1 Year 2…

A: A) Inflation rate=100% between 2years since all prices exactly double themselves in two year

Q: A country is experiencing an inflation rate of exactly 100 percent per month for 4 months. At the…

A: Inflation is the consistent rise in general price level over period of time . And growth of…

Q: "Consider the following cash flow in actual dollars. The inflation rate is 3.2%. The inflation-free…

A: With the given information, we first need to solve for an effective interest rate. To solve for…

Q: If the Consumer Price Index was 155 in one year and 165 in the next year, then the rate of inflation…

A: Inflation refers to an increase in the prices of all the goods and services produced in an economy…

Q: An inflation rate of 10 percent would erode the purchasing power of the dollar by A) 9.1 B) 5 C) 10…

A: In an economy, the purchasing power refers to the actual value of money by which an individual van…

Q: Table 1: Price Data Year 2007 2008 Average Price Level $1.042 $1.13 In Table 1, what was the…

A: Answer; The inflation rate between 2007 and 2008 is 8.45%

Q: Suppose Amy is an avid reader and buys only comic books. Amy deposits $4,000 in a bank account that…

A: Nominal interest rate is the return on capital, that is, a percentage rise in money that the lender…

Q: How long would it take for the price level to double if inflation persisted at: (a) 2 percent per…

A: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a…

Q: Question 14 Refer to the information provided in Table 22.6 below to answer the question(s) that…

A: CPI or the consumer price index is the weighted average basket of goods and services that are to be…

Q: If the price of a good is $200 in 2015 and $204 in 2019, what is the inflation rate? A) 22% B) 20%…

A: Inflation refers to the situation of increasing price level in the economy.

Q: Henrique is a baseball fan and attends several games per season. His expenses per season are listed…

A: Answer to the question is as follows:

Q: The real interest rate is 5% per quarter and the inflation rate is 2% per quarter. Calculate the…

A: The inflation-adjusted return is a measure of return that takes into account the inflation rate…

Q: Assume that the retail price index (RPI) for the UK was 100 in January 1950 and 3246 in January…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: Costs due to an annual inflation rate of 4 percent can be determined by repeatedly multiplying the…

A: Inflation refers to the increase in price level. It erodes the purchasing power of money as the…

Q: Price of wine Price of coffee 2021 $5 $5 2022 $9 $6 Assuming that wine and coffee…

A: Inflation basically refers as the rate at which prices rise over time. Inflation is usually defined…

Q: If the Consumer Price Index rises from 140 in a year to 150 in the following year, the rate of…

A: CPI is the consumer price index. Inflation is the increase in price level over a period of time.…

Q: alculate the inflation rate from 2020 to 2021 if the index number in 2020 was 145 and increased to…

A: Given Index number in 2020 =145 Index number in 2021 =152 Formula to calculate the inflation rate…

Q: The apparent interest rate is 9.18% and the real interest rate is 6%. What is the inflation rate?

A: Interest is the cost of capital. We can use interest in the context of either borrowed funds,…

Q: Cindy is pumping gasoline at ExxonMobil and saw that the price is $3.59 per gallon. She is curious…

A: Inflation isn't just a number; it's a compass guiding economic choices. It impacts savings,…

Q: If inflation was 1% which policy would be use ? (Contractionary or expansionary )

A: Inflation is defined as the rate at which prices rise over time. Inflation is usually defined as a…

Q: At the beginning of 2007 the CPI was 154. At the beginning of 2008 the CPI was 169. What is the…

A: Given CPI in 2007 = 154 CPI in 2008 = 169 The following formula wil be used to calculate rate of…

Q: The price index was 120 in Year 1 and 126 in Year 2. What was the inflation rate?

A: Price index shows the price level at the given year. Inflation rate is the rate at which the price…

Q: How much money can the Eastman Land and Cattle Company afford to spend now for a tractor trailer in…

A: Present value is the theory that said an amount of money today is value greater than that same…

Q: The price of oil in 2005 was $3,350 per barrel. “This price is still lower than the price of oil in…

A: Inflation rate tells us about the change in prices over a time period. For example , an inflation…

Q: f inflation is 4 percent per year and you receive a 3 percent raise in income, t

A: Inflation 4% Income rises by 3%

Q: Suppose Frances is an avid reader and buys only mystery novels. Frances deposits $2,000 in a bank…

A: The percentage that increases or decreases in prices during a specified period, usually a month or a…

Q: b. The price of a product was $0.88 in the year 2008 and $1.28 in the year 2018. What is the average…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Goods costing $27.10 at the beginning of the year 1940 cost $176.52 at the beginning of the year…

A: Inflation is the general increase in the price level of all goods and services in the market. Some…

Q: Calculate inflation if real interest rate is 12% and nominal interest rate is 15%

A: The Given information is as follows:- Real interest rate = 12% Nominal interest rate = 15% Inflation…

Q: If the CPI increased from 80 to 84, the rate of inflation is: Group of answer choices 4.7% 10% 4% 5%

A: CPI: It is used as a measure of the aggregate price level in an economy.

Q: The consumer price index was 158.6 in 1999 and 166.2 in 2000. Therefore, the rate of inflation in…

A: The inflation is the rise in the aggregate price level. The inflation would result in a rise in the…

Q: If the consumer price index is given as 100 in 1992 and in 2004 it is 150, how much inflation…

A: Consumer Price Index is the most popular measure of inflation and deflation. It measures overall…

Q: The average rate of inflation in the United States in the last 100 years is approximately 3.26%. In…

A: 100 year's average inflation = 3.26% Last year inflation = 8.5% Present worth of a future amount or…

Question

If the price level increased from 120 to 142, then what was the inflation rate?

1.2 percent

0.8 percent

18.3 percent

22.0 percent

Video Video

AI-Generated Solution

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.

Unlock instant AI solutions

Tap the button
to generate a solution

Click the button to generate
a solution

SEE SOLUTION

Similar questions

In 2000, the value of the Consumer Price Index was 171.20 and the price of gasoline (per gallon) was $1.56. Six years later in 2006, the value of the Consumer Price Index was 200.43 and the price of gasoline (per gallon) was $2.56. What was the specific inflation rate for gasoline during this period?
What is the cost for having inflation indexation as a product feature
The nominal interest rate is 10%. The inflation rate is 2%. The real interest rate is equal to
'UK inflation remained unchanged at 2.8 per cent for the second month in a row, according to official data released on Tuesday. The Office for National Statistics data showed fast rising prices for audio-visual equipment, books, newspapers and stationery in the 12 months to March kept consumer price inflation high. Smaller rises in prices for furniture and furnishings and motor fuels, and lower prices for alcohol contained inflationary pressures. A new measure of consumer price inflation which includes housing costs was also unchanged from February, remaining at 2.6 per cent.' The extract describes an example of... (please state A,B,C or D in the answer) A: constant inflation B: decreasing inflation C: increasing inflation D: zero inflation
If the Consumer Price Index rises from 125 in a year to 130 in the following year, the rate of inflation in that year is: Group of answer choices a) 4% B) 1.04% C) 3.85% D) 5%
If the CPI in period 1 is 125 and the CPI in period 2 is 150, then the rate of inflation between period 1 and period 2 is 30%. 50%. 20%. 25%.
An engineer's salary was $40,000 in 2004. The same engineer's salary in 2011 is $75,000. If the company's salary policy dictates that a yearly raise in salaries reflect the cost of Jiving increase due to inflation, what is the average inflation rate for the period 2004-2012?
The price index was 220 in one year and 238.2 in the next year. What was the inflation rate? a) 8.3 percent b) 108.3 percent C) 4.8 percent c) d) 38.2 percent
The cost of first-class postage has risen by about 5% per year over the past 30 years. The U.S. Postal Service introduced a one-time forever stamp in 2008 that cost 41 cents for first-class postage (one ounce or less), and it will be valid as first-class postage regardless of all future price increases. Let’s say you decided to purchase 1,000 of these stamps for this one-time special rate. Assume 5% inflation and your personalMARR is 10% per year (im). Did you make a sound economical decision?
Question 7 The price of a product was $0.88 in the year 2008 and $1.28 in the year 2018. What is the average annual inflation rate for this product? 3.82 % 3.68% 3.42 % 3.98 % Question 8 If the CPI for January 2008 is 208.837 and the CPI for December 2018 is 255.539, what is the average annual inflation rate (per year) from Jan 2008 to Dec 2018? (Hint: Calculate monthly inflation rate and then use annual effective interest rate) O 1.65 % ☐ 1.75% O 1.95 % O 1.85 %
If the Consumer Price Index was 107 in one year and 104 in the following year, then the rate of inflation was approximately
Calculate the inflation rate from 2016 to 2017 if the index number in 2016 was 125 and increased to 128 in 2017.