**Title: Understanding Changes in Real Income****Instructions: Calculate the Changes in Real Income (or Real GDP) for Each Case Below.****A.** Nominal income falls by 2 percent, and the price level falls by 10 percent. → _______% (increase, decrease)**B.** Nominal income rises by 8 percent, and the price level rises by 4 percent. → _______% (increase, decrease)**C.** Nominal income rises by 12 percent, and the price level rises by 15 percent. → _______% (increase, decrease)**D.** Nominal income falls by 4 percent, and the price level rises by 6 percent. → _______% (increase, decrease)**Question: Which Case Provides the Greatest Increase in Real Income?** (A, B, C, D) → Circle the Correct Answer!---**Additional Task: Identify Who Would be Hurt by Inflation**In this exercise, indicate (circle or highlight) who would be adversely affected by inflation from the categories below:- Fixed income receiver- Debtor (Borrower)- Creditor (Lender)- Savers- Flexible-income receivers

" Since you have posted a question with multiple sub-parts, we shall answer the first sub-parts .…

Answered: Show how much changes in real income…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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q1
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?
I need explanation real GDP is correct answer
Table 24-4. Will's expenditures on food for three consecutive years, along with other values, are presented in the following table. Year 1 2 3 Expenditures on food $5,000 $5,800 $6,600 Consumer price index 160.0 168.0 x Refer to Table 24-4. Will's Year 1 food expenditures in Year 2 dollars amount to a. $5,500. b. $5,250. c. $4,975. d. $3,625.
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.
QUESTION 9 If real GDP decreased by 1% and nominal GDP increased by 2%, then output: a. increased and the price level increased. b. increased and the price level decreased. c. decreased and the price level decreased. d. decreased and the price level increased.
Economics If the prices of German made cars imported into the United States Fall, which answer is correct? Provide justification please thanks A. the consumer price index will fall, but the GDP deflator will not fall B. both the GDP deflator and the consumer price index will fall c. neither the gdp deflator nor the CPI will fall d. the GDP deflator will fall but the consumer price index will not fall. d. the gdp deflator will fall but the consumer price index will not fall.
2. During recessions, central banks tend to cut interest rates. You are interested in understanding the question of how interest rates affect GDP. You look in the data and see that interest rates tend to be low when GDP is low (i.e. the interest rate is pro-cyclical). Why do you think this simple correlation might give a misleading sense of the effect of changes in the interest rate on GDP? How might a model help you answer this question?
An increase in the price level, ceteris paribus, is illustrated by: Price Level (P) P2 SRAS SRAS* W P1 g Q1 Q2 Q3 Q4 Real GDP (Q) Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a a rightward shift from SRAS to SRAS*. a leftward shift from SRAS* to SRAS. C a movement from point b on SRAS to point f on SRAS*. d a movement from point a to point b along SRAS. × Your answer
Please answer B and C only and dont use excel
Ee.71.

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