Related to the Economics in Practice on p. 133: The Consumer Price Index in the United States was 207.3 in 2007, 215.3 in 2008 and 214.5 in 2009. If a retiree's pension is tied to the CPI, his monthly pension check would have increased from from , and decreased O a. 2007 to 2008; 2007 to 2009 O b. 2007 to 2009; 2007 to 2008 O c. 2007 to 2008; 2008 to 2009 Od. 2008 to 2009; 2007 to 2008

Name several forms of indexing in the private and public sector.

Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the GDP deflator to convert from nominal to real would be more appropriate than using the CPI.

What happens to the labor force participation rate when employed individuals are reclassified as unemployed? What happens when they are reclassified as discouraged workers?

Suppose that the Consumer Price Index in the United States was 2.073 in 2007, 2.153 in 2008 and 2.145 in 2009. If a retiree's pension is indexed for inflation, her monthly pension check would have from 2007 to 2008, and O decreased; increased O decreased; decreased from 2008 to 2009. O Increased; increased O increased; decreased

Trish earned a salary of $60,000 in 2002 and $80,000 in 2006. The consumer price index was 177 in 2002 and 221.25 in 2006. Trish's 2002 salary in 2006 dollars is $75,000; thus, Trish's purchasing power increased between 2002 and 2006. O $75,000; thus, Trish's purchasing power decreased between 2002 and 2006. $85,000; thus, Trish's purchasing power increased between 2002 and 2006. $85,000; thus, Trish's purchasing power decreased between 2002 and 2006.

Using the table below, find the real value of a payment of $2,500 to be recelved each year given the following CPI values. Next find the amount that this $2,500 should be adjusted to in order to keep its real value at $2,500. Instructions: Round your answers to two decimal places. Cost-of-living adjusted payment BUL 2,500 I Real value of Year CPI $2,500 2015 T 100 2016 103 | 2017 105 2018 110

Using the table below, find the real value of a payment of $2.200 to be received each year given the following CPI values: Next find the amount that this $2,200 should be adjusted to in order to keep its real value at $2,200. Instructions: Round your answers to two decimal places. Real value of Cost-of-living adjusted payment 2,200 66 O Year CPI $2,200 2015 100 2,200 2016 103 2135.92 O 2017 105 2095.24 O 110 110 2000 220 2018

Question    1Evaluate    how    each    of    the    following    individuals    would    be    affected    by    unanticipated    inflation:a) A    department    store    clerkb) A    heavily    indebted    farmerc) A    private    pensionerQuestion    2a) What    is    the    Consumer    Price    Index    (CPI)?b) Consider    an    economy    that    produces    and    consumes    shoes    and    houses.    In    thetable    below    are    data    for    two    different    users.Year2000Year2001 Price    of    a    house $120,000 $145,000Price    of    a    pair    of    shoes $150 $170Number    of    houses    produced 1,000 1,050Number    of    pairs    of    shoes 650,000 525,000(i) Calculate    the    CPI    for    both    years.(ii) Calculate    the    rate    of    inflation    for    2001    using    the    CPI.(iii) Calculate    the    GDP    deflator    for    both years.(iv) Calculate    the    rate    of    inflation    for    2001    using    the    GDP…

Ellena's pension was $10 per period in 2033. What amount of money in the base year would give her the same purchasing power? Do not enter the S, and round to whole cents. If your answer is $2.224, enter 2.22. If your answer is $2.225, enter 2.23. 10 Year 2031 2032 2033 2034 2035 2036 CPI 90 95 100 104 110 112