Inflation Inflation Rate Year CPI (percent) 1931 15.8 1932 14.0 1933 13.3 1946 20.1 1947 23.2 1948 24.7 1978 67.8 1979 74.7 1980 85.4 2001 181.9 2002 183.6 2003 191.4 nstructions: Enter the year using all four numbers (yyyy). p. Using the table above, indicate the year the economy experienced: The highest annual inflation rate: The largest annual negative inflation (deflation) rate: The most stable price level (annual inflation rate closest to zero):

Two countries, Country N in North America and Country S in South America, have the same CPI basket. Year 2000 is the CPI base year for both countries. In that year, the cost of CPI basket in Country N is $N100, and in country S is $s1000, where $N and $s are their respective currencies. Twenty years later, in 2020, the CPI in Country N rose to 240, and in Country S to 360. a) In the ideal world in which the purchasing power parity (PPP) holds true, what should be the nominal exchange between $s and $N in Year 2000 and in Year 2020. Show calculations and explain the change in nominal exchange rate. b) Suppose in reality, the nominal exchange rage between the two currencies is 18 $s per $N in Year 2020. First, explain why the nominal exchange rate differs from your calculation above. Second, calculate the real exchange rate between the two countries, and explain the meaning of your calculated result. c) During Year 2021, the growth of the real GDP in the two countries are, 0% in country…

The reference base period for the CPI is 1982 – 1984. In April 2020, the CPI was 256.4 . What can we conclude from this information?   The CPI in April 2020 tells us that the _______ of the prices paid by urban consumers for a fixed basket of consumer goods and services was _______.     A. inflation rate; 156.4 percent per year   B. inflation rate; 256.4 percent per year   C. average; 256.4 percent higher in April 2020 than the average of 1982 – 1984   D. average; 156.4 percent higher in April 2020 than the average of 1982 – 1984

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 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, and then calculate the annual Inflation rate for each year (not including the base year). Instructions: Round your answers to 2 decimal places. Year Nominal Wage ($) Real Wage ($) Price Level Inflation Rate (%) 6.00 3.75 12.00 200.00 3. 5.00 280 00

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 a basket of goods and services has been selected to calculate the CPI and 2018 has been selected as the base year. In 2017, the basket’s cost was $80; in 2018, the basket’s cost was $86; and in 2019, the basket’s cost was $90. The value of the CPI in 2019 was a 104.6 and the inflation rate was 4.6%. b 104.6 and the inflation rate was 12.5%. c 112.5 and the inflation rate was 12.5%. d 112.5 and the inflation rate was 4.6%.

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Refer to the table given. If 2010 is the base year, the inflation rate between 2010 and 2011 is percent, and the inflation rate between 2011 and 2012 is percent. Price per unit (TL) 2010 Units purchased 2009 2011 2012 Blueberries Pineapples 8 2.00 2.00 2.10 2.40 2.00 2.50 2.50 3.00 Cheese 3 2.50 3.00 3.50 4.00 3.9: 17.1 7.4; 13.9 10.2; 10.4 6.1; 16.1

A country has the following statistics for 5 years: Year CPI 2012 187.5 2013 198.3 2014 150.2 2015 138.4 2016 126.5   a.) Calculate the inflation for each year (starting in 2013) b.)  Do you think that the country is generally happy with the inflation rates? Why or why not?