If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level, we would base our measure of inflation on OA. the producer price index. OB. the consumer price index. OC. the GDP deflator. OD. the household price index.

A) Inflation is the steady and widespread increase in prices. The inflation rate, measured by CPI, rose .1% in May (since April) and rose a total of 4% year-over-year (May 2022 to May 2023). Read the BLS report on the Consumer Price Index and identify an “item” or “all items” and begin to consider why the price increased. Do a news search or using (clear, logical, rational) reasoningexplain whether prices are increasing because demand increased or because supply decreased. Graph and explain your answer

Use the following data for 2019 to answer the question: Prices That Rose Health insurance Gasoline Lettuce (%) Prices That Fell +20.5 Televisions +12.8 Peanut butter +7.6 Oranges +5.9 Apples +4.2 Eggs +1.9 College textbooks +0.6 Coffee Average Inflation Rate: +2.3% Cigarettes Hot dogs College tuition Bananas (%) -20.8 -6.0 -5.5 -4.8 -4.6 -3.1 -1.4

Refer to the following table. Suppose the CPI basket consists of 10 pies of pizza and 20 bottles of milk respectively, and 2020 is the base year. Year Price of pizza Price of milk 2020 $250 $40 2021 $280 $45 а. Calculate the CPI in 2020 and 2021 respectively. What is the inflation rate in 2021? b. Suppose the minimum wage is $37.5 per hour in 2020, how much would it be in 2021 in order to maintain the same purchasing power in 2020?. С. Which one do you think is a better measure of a household's cost of living, CPI or GDP deflator? Why?*

A) Inflation is the steady and widespread increase in prices. The inflation rate, measured by CPI,  rose .1% in May (since April) and rose a total of 4% year-over-year (May 2022 to May 2023). Read  the BLS report on the Consumer Price Index and identify an “item” or “all items” and begin to  consider why the price increased. Do a news search or using (clear, logical, rational) reasoning explain whether prices are increasing because demand increased or because supply decreased.  Graph and explain your answer

Consider a simple economy that only produces: pencils, t-shirts, and bananas. Using the information in the table below, calculate the inflation rate for 2020, as measured by the consumer price index. Product Pencils T-shirts Bananas 1.9% 1.1% O-1.1% 1.5% O-1.9% Quantity 8 15 5 Base year price (2010) $2 $5 $1 Price (2019) $3 $7 $1.50 Price (2020) $3.50 $6.75 $1.75

What information is given by the CPI?   The CPI tells us _______.     A. the price level in a given period expressed as a percentage of the price level in the base period, which equals zero   B. the price level in a given period expressed as a percentage of the price level in the base period, which equals 100   C. the inflation rate in a given period compared to the inflation rate in the base period, which equals 100   D. the inflation rate in a given period compared to the inflation rate in the base period, which equals zero

Question 1 1.a) When inflation occurs, all prices rise together at the same rate. True False   1.b) To calculate the consumer price index, the basket price in the current year is divided by the a.GDP deflator b.inflation rate c.basket price in the base year   1.c) Milton Friedman said that inflation is always and everywhere caused by a.printing money b.minimum wages c.too much government spending