ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- If the consumer price index was 100 in the base year and 103 in the following year, then the inflation rate was a. 3 percent. b.-3 percent. c. 1.03 percent. d. 0.3 percent.arrow_forwardStep 3-Unemployment and Inflation Homework 80 Saved Basket of Goods Gasoline (per gallon) Pizza (per pizza) Beer (per 6-pack) Price Base Year (dollars) $ 1.40 3.75 3.95 95.00 Price Fast Year (dollars) $1.75 7.70 6.70 223.00 Help Save & Exit Check m 10 points eBook Print References Textbook (per book) Instructions: Round your answers to two decimal places. a. What is the total cost for a basket of goods that includes 200 gallons of gas, 60 pizzas, 45 6-packs, and 3 textbooks? In the base year: $ Last year: $ b. Using this basket of goods, compute the following CPI values: In the base year: Last year: c. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $100 per textbook. Compute the total cost for this basket of goods and the CPI. Total cost of basket: $arrow_forwardjane wants to borrow $100 from jack. jack wants to make 5% real return on his money, so they both agree on a 5% interest rate paid next year. both dont anticipate the 3% inflation next year. in this case, a. jane will pay $8 a year from now on b. jack will receive more than 5% of real rate of return a year from now. c. jane is better off d. jack is better offarrow_forward
- The real interest rate is the: O interest rate after taxes are deducted. stated interest rate without a correction for deflation. interest rate in terms of changes in purchasing power. O stated interest rate without a correction for inflation.arrow_forwardIf the employment rate increase reine 10% to 14% the economy willarrow_forwardSuppose your nominal income in dubai economic rose by 6.4 percent and the price level rose by 4.2 percent in some year Required: a. Calculate the percentage of real income (approximately) in dubai b. Assume that the nominal income rose by 4.1 percent and your real income rose by 2.7 percent in some year, Calculate the approximate rate of inflationarrow_forward
- Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?A. More than todayB. Exactly the sameC. Less than todayarrow_forward↑ Inflation Measure WPI Headline WPI Headline 1 WPI Food 0.34 WPI Core 0.82 CPI Headline 0.32 CPI Food 0.41 CPI Core -0.04 Inflation Measure WPI Headline WPI Food WPI Core CPI Headline CPI Food CPI Core WPI Headline 1 0.55 0.93 0.58" 0.34" 0.77" A: 1997 02-2008 04 WPI Food WPI Core CPI Headline CPI Food CPI Core 1 0.20 0.90 0.93 0.63 1 0.09 0.26 -0.32 B: 2009 01-2019 04 WPI Food WPI Core CPI Headline CPI Food CPI Core 1 0.27 0.91" 0.89 0.74* 1 0.39 0.10 0.67* Revisit Later 1 0.94 0.81 1 0.92* 0.86* 1 0.58 1 0.61* 1 1 Table 2: Correlation matrix of inflation measures (Please ignore the meaning of the * sign) Q. Based on Table 2, we can draw the conclusion that- Select an option & Clear Response The direction of movement between CPI core and WPI headline is not necessarily the same across the years Post 2008, WPI core and WPI headline have moved in opposite directions Prior to 2009, the correlation between WPI core and WPI headline has been very weak Post 2008, CPI core and WPI headline…arrow_forwardI only need help with part (C)arrow_forward
- question attached in ss below thanks for helpal hepahpohk aekoh hk ewarrow_forward"Everyone is hurt by inflation." That statement is: A. Correct B. Incorrect because a price increase to one person is higher income to another C. Incorrect because people buy the same bundle of goods D. Incorrect because this statement concerns real income and not nominal incomearrow_forwardplease answer correct asap plz both are question Dont answer by pen pepararrow_forward
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