Sally, a resident of Scandia, goes to a salon for a haircut. The haircut, which usually costs $50, now costs $40. Sally is confused and curious to understand why she could get the haircut at a lower price despite the salon not offering any discounts. She also notices that the prices of all goods and services in Scandia have decreased. Which situation is occurring in the economy?Inflation Disinflation DeflationStagflation

The first two columns of the table below describe the goods and quantities included in your current monthly consumption. Suppose you have been able to use all of your monthly income (no savings) to afford this level of fixed consumption over the last few years despite the increase in the cost of living. • Round all expenditure calculations to the nearest dollar. • Round CPI and inflation (expressed as an integer) to 1 decimal place. • Carry your rounded figures throughout the rest of the problem. 2018 2019 2020 Basket Prices Prices Item Prices Quantities Meal Kit Delivery $106.00 8 $107.00 $110.25 $48.25 $50.00 $46.00 $53.00 Water 16 Hydro Electricity 14 $56.90 $58.75 Dry cleaning $62.00 10 $64.75 $68.00 Entertainment $26.00 17 $28.75 $32.80 Part (a): Using the quantities specified in the 2018 basket of goods, calculate the CPI for 2018, 2019 and 2020. Part (b): What is the inflation rate between 2018 and 2019? 2019 and 2020? Part (c): Suppose inflation is expected to remain constant…

Locate an example of the localized Atlanta/Sandy Springs/Roswell CPI that is performing better than the national CPI. State the two numbers you researched--local and national-- and forecast based on the October data how you think the November data will look for both local/national CPIs. Will the local CPI continue to perform better than national? Will it slow down to align with national? Locate an example of the localized Atlanta/Sandy Springs/Roswell CPI that is performing worse than the national CPI. State the two numbers you researched--local and national-- and forecast based on the October data how you think the November data will look for both local/national CPIs. Will the local CPI improve so that it is more in line with the national CPI?

Which of the following would occur in an economy experiencing deflation?

Suppose that typical CPI basket for consumers contains 3 goods: 5 wheels of cheese, 3 t-shirts, and 10 gallons of gasoline. The prices of the goods in 2019 and 2020 are listed below:  Item  Prices 2019 Prices 2020 Cheese $5 $10 T-shirt $10 $15 Gallon of Gasoline $3 $6   A) Find the cost of the CPI Basket in 2019:  B) Find the cost of the CPI Basket in 2020:  C) Using 2019 as the base reference period, calculate the CPI for 2020 D) What is the inflation rate in 2020?  E) Suppose that you made $40,000 in 2019 and $41,000 in 2020. What has happened to your real income from 2019 to 2020?

Economics Question: How does the concept of "deflation" differ from "disinflation," and what are the potential consequences of each for an economy? A) Deflation is a temporary decrease in the inflation rate, while disinflation is a persistent decrease in prices, both have no significant consequences for an economy. B) Deflation is a sustained decrease in the general price level, potentially leading to reduced consumer spending and economic contraction, while disinflation is a slowing of the inflation rate without deflation's harmful effects. C) Deflation and disinflation are interchangeable terms. D) Deflation always leads to economic growth. Don't use chatgpt please provide valuable answer otherwise be ready for disupvote

1. Calculating inflation using a simple price index Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket's total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Quantity in Basket 1 150 10 8 40 Suppose this price index uses 2020 as the base year. Price (Dollars) 64 2 Between 2020 and 2021, the UPI increased by 80 2 2020 3 Cost (Dollars) 64 300 800 16 120 1,300 100 Price (Dollars) 104 2 85 2 4 2021 Cost (Dollars) In the last row of the table, calculate and enter the value of the UPI for the remaining years. 104 300 850 16 160 1,430 110 10% Between 2021…

Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of coffee, one donut, and one newspaper. In year one, the basket costs $6.00. In year two, the price of the same basket is $7.00. From year one to year two, there is    at an annual rate of    .   In year one, $12.00 will buy    baskets, and in year two, $12.00 will buy    baskets.   This example illustrates that, as the price level rises, the value of money    .

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