Items 2000 2020 Price ($) 0,71 0,74 1,34 2,71 Quantity 18 5 Price ($) 2 Quantity 27 Margarine Shortening Milk Potato Chips a. Compute a simple aggregate price index. Use 2000 as base period b. Compute Laspeyres' price index for 2020 using 2000 as base period. c. Compute Paasche's index for 2020 using 2000 as base period. d. Determine the Fisher's Ideal index using the values of Laspeyres and Paasche indexes computed in the two previous problems 70 27 1,88 2.89 3,99 65 33

Items 2000 2020 Price ($) 0,71 0,74 1,34 2,71 Quantity 18 5 Price ($) 2 Quantity 27 Margarine Shortening Milk Potato Chips a. Compute a simple aggregate price index. Use 2000 as base period b. Compute Laspeyres' price index for 2020 using 2000 as base period. c. Compute Paasche's index for 2020 using 2000 as base period. d. Determine the Fisher's Ideal index using the values of Laspeyres and Paasche indexes computed in the two previous problems 70 27 1,88 2.89 3,99 65 33

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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21. Given the data in the above table, what is the price index for 2015, using 2012 as the base year and using the 2012 consumption pattern (market basket)? a) 125 b) 153 c) 1.2 d) 164 e) 120
Table 2.5.4 from BEA What categories of consumption expenditures have the highest inflation rate between 2012 and 2021? Are there any categories for which prices are relatively stanle or cheaper?
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Britney is a baseball fan and attends several games per season. Her expenses per season are listed in the table below: Year 1 Year 2 5 Baseball Tickets $500 $560 Jersey $120 $150 Food $150 $160 Transport $60 $70 Assuming that year 1 is the base year, calculate the price index for year 1 and for year 2. Question 3 options: 88, 100 88, 113 100, 113 100, 88
Question 20 prices. Nominal gross domestic product (GDP) is GDP measured in a) base b) current Oc) marginal d) average O e) fixed
3. In a small community, breakfast is the most important meal of the day. Therefore, the only two goods that this community produces are coffee and scones in the following amounts: Year 2020 2021 Quantity 60 cups 90 cups Coffee Price $1.25 $1.45 Quantity 45 units 65 units Scones Price $2.10 $3.95 a) Calculate the inflation rate for 2021 using the GDP deflator method (assume that 2020 is the base year for real GDP calculations). Show your work. b) Calculate the inflation rate for 2021 using the CPI method (assume that 2020 is the base year for CPI calculations). Additionally, assume that the consumption basket for both years contains only 10 cups of coffee and 40 scones. Show your work. c) Compare the results of both inflation calculations and explain why they are similar or different based on the two methods and on the specific data used in this example.
Using the table below, (See chapter 5 for price index) Price (per unit) Quantity (basket) 20 pounds Item 2018 (year) 2019 (year) Potato $2 $2.5 Onion 40 pounds $3 $3.1 Apple 30 pounds $1 $1.2 9. Compute the cost of the basket in each year. 10. By assuming the base year is 2018, derive price indexes of 2018 and 2019. 11. Using the price indexes from #10, calculate the inflation rate between 2018 and 2019. 12. Let's assume "nominal income" increased 4% between 2018 and 2019. Approximately how much percentage of "real income" did change between 2018 and 2019?
Britney is a baseball fan and attends several games per season. Her expenses per season are listed in the table below: Year 2 Year 1 5 Baseball $500$560 Tickets Jersey $120 $150 $150 $160 Food Transport $60 S$70 Assuming that year 1 is the base year, calculate the price index for year 1 and for year 2. 100, 113 100, 88 88, 113 88, 100
3. Suppose an economy has two years worth of data, years 1 and 2. Sup- pose there are also two goods, bread and corn. Suppose, in year one, 30 units of corn are sold at a price of 1 $ and 20 units of bread are sold at a price of 2 S. Suppose in year two, 60 units of corn are sold at a price of 1.5 $ and 80 units of bread are sold at a price of 4 $. Compute nominal GDP in both periods. Compute real GDP under both defini tions of a base year. Compute also a chain weighted real GDP series. For all three measures, compute the GDP deflator
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