Suppose a simple economy produces three goods only. The price and output data for some selected years are shown below.     Price (dollars) Price (dollars) Quantity (number) Quantity (number)   2002 2012 2002 2012 Pop Crackers Cucumbers 0.75 1.25 2.00 1.10 2.10 3.00 100 300 200 120 375 225   1) Assume that the reference base year is 2002 (CPI = 100)    a) What is the CPI (consumer price index) in 2012?     b) What is the nominal GDP in 2012?       c) What is the real GDP in 2012?

Q: Congratulations! Your boss has given you a raise.  ​However, you want to know whether your…

A: The real wage is given as:  => Real Wage = Nominal Wage / CPI

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A: This can be defined as a concept that shows the overall rise in the price of commodities and…

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A: A consumer price index tends to measure the changes in the level of price of a weighted average…

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A: The GDP deflator monitors price changes across all goods and services produced in a nation.The GDP…

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A: Nominal GDP refers to the total valuation of all products produced within an economy during a…

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A: Cost of goods current year  = Quantity in basket*price in current year. Percentage Change in CSPI =…

Q: What is the CPI in 2020?  What is the inflation rate between 2019 and 2020?

A: The measure that in turn tend to depict thechanges in the level of price of a consumer's basket of…

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A: Detailed Explanation: Let's solve this problem step by step. Given information:Price of a loaf of…

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A: a. If minimum wage in 1980 was w1980, minimum wage in 2021 will be w2021=w1980*278.886.3≈3.23w1980…

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A: Inflation is defined as the rate at which prices rise over time. Inflation is usually defined as a…

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A: Nominal salary in 1917 = $7500.CPI in 1917 = 17.3Nominal salary in 2017 = $174000CPI in 2017 =…

Q: A one-pound bag of cookies cost 30 cents in 1922. If the CPI in 1922 was 17 and the CPI in 2014 is…

A: Price of cookies in 2014 = Price in 1922 x (CPI in 2014 / CPI in 1922) = $0.30 x (230 / 17) = $4.06

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A: Total cost is the summation of all the money needed to produce a particular good. The price index is…

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A: Percentage increase in the price of food =p2-p1/p1*100 =12-8/8*100=50 Percentage increase in the…

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A: Nominal GDP is the value of final goods and services produced within the domestic territory…

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A: Given; For year 2015 Goods Price Quantity P×Q Juice $3 8 $24 Cloth $4 5 $20 For year 2016…

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A: Inflation: Increment in price over the period of time is known as inflation. Consumer price index…

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A: The measure that depicts the average price change over a span o time that the consumers tend to pay…

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A: The market basket includes 10 units of Bacon, 15 units of Eggs, and 20 units of coffee. Bacon is…

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A: a) The value of the CPI index in December 2018 is 107.76. The value of the CPI index in the Base…

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A: Answer: The formula of CPI is given below: CPI=Cost of basket in current yearCost of basket in base…

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A: Consumer price index refers to the changes in the price level of consumer goods and services…

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A: The inevitable surge in the general levels of prices that takes place over the year is "inflation".

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A: Inflation is the % change in the value of the Wholesale Price Index (WPI) on a year-on-year basis.…

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A: The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by…

Q: Refer to the Table Below. What is the CPI in 2019 if the reference base period is 2002? TABLE 1…

A: CPIt = (price of basket in year t)*100/ (price of basket in base).

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A: The Consumer Price Index(CPI) is a measure of the average change in prices of a basket of goods and…

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A: In an economy, to calculate consumer price index in specfiic year, one need to compute the nominal…

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A: Consumer Price Index The Consumer Price Index, which measures the total change in consumer prices…

Q: 9. The Nominal Price of a gallon of juice is $0.25 (in Year 1978) and $1.35 (in Year 2009). The CPI…

A:

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A: In an economy, consumer price Index is used to describe the change in the cost of basket over a…

Q: The following Table 2 gives the consumer price index from year 2012 to 2017. Table 2 Year CPI…

A: Year CPI (2005=100) CPI (2014=100) 2012 102.3   2013 110.5 99.8 2014 111.3 100.0 2015…

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A: CPI is measured using fixed basket of goods.

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A: To find cpi, cost of basket of goods in the  year x is divided by the base year.

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A: The market basket used to calculate the CPI consists of 40 units of food and 20 units of clothing.…

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A: The consumer price index (CPI) is an approach to changes over time in the general price for the…

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Q: What does the real average hourly earnings for 1965 in 1982-1984 dollars equal?

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A: The inflation refers to the increase in the general price level. High inflation is a cause of…

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A: Since the question you have asked has multiple parts, we will solve the first 3 parts for you. If…