The values of nominal prices of a good at the end of each year between 2016 and 2019 (with 2016 being the base year) are listed in the table which also shows the annual rates of inflation: 2016 150 Inflation 5% Year Price 2017 158 x% 2018 170 y% where x, y, z are the last three digits of your student code (for example: if a student code is 17071435 then x = 4, y = 3, z = 5). 2019 179 z% a/ If the index number of the real price for 2020 is 105 and the rate of inflation for this year is 6%, work out the value of nominal price in 2020; b/ If the index number of the nominal price for 2015 is 90, work out the value of real price in 2015.

The values of nominal prices of a good at the end of each year between 2016 and 2019 (with 2016 being the base year) are listed in the table which also shows the annual rates of inflation: 2016 150 Inflation 5% Year Price 2017 158 x% 2018 170 y% where x, y, z are the last three digits of your student code (for example: if a student code is 17071435 then x = 4, y = 3, z = 5). 2019 179 z% a/ If the index number of the real price for 2020 is 105 and the rate of inflation for this year is 6%, work out the value of nominal price in 2020; b/ If the index number of the nominal price for 2015 is 90, work out the value of real price in 2015.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 33P: The index number representing the price level changes from 110 to 115 in one year and then from 115...

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