Thirty years ago Daniel bought a plot of land for $50,000 when the CPI was 50. Now the CPI is 180 and he sold the land for $180,000. What issue might inflation cause for Daniel? options: a. tax distortions b. shoe-leather costs c. price confusion d. money illusion
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- In 1997, the federal minimum wage was $5.15, today is $7.25. The CPI was 156.9 at the beginning of 1997, now it stands at 260.28. The nominal wage growth during this period was Type your answer here %.* The inflation rate during this period was Type your answer here %.* (*) Write your answer in percentage. If your answer is 0.6435, write 64.35. Has the minimum wage kept up with inflation? (Answer yes or no) Write your response here...K The monthly market basket for consumers consists of pizza, 1-shirts, and rent. The table below shows market basket quantities and prices for the base year (Year 1) and in the following two years. The inflation rate between Year 1 and Year 2 is The inflation rate between Year 2 and Year 3 is Base Year (Year 1) Quantity 15 3 1 Price in the Base Year Product Pizza T-Shirts Rent (Round both answers to one decimal place). $3.50 $20.00 $450.00 Price in Year 2 $4.38 $18.00 $495.00 Price in Year 3 $4.55 $17.00 $585.00Ten years ago, Ginny inherited $50,000 from her grandmother. She decided to invest all of this money in GE stock. Suppose she decides to sell the stock today so she can purchase her first home. The sale price of the stock is $64,500. Suppose that at the beginning of the ten year period the Consumer Price Index (CPI) was 125 and today the CPI is 215. Use this information to choose an answer that best desribes the impact inflation has on Ginny's tax liability a)Inflation has decreased Ginny's tax burden. b) Inflation has not impacted Ginny's tax burden. c) Inflation has increased Ginny's tax burden.
- 2. If the CPI this year is 110 and was 100 in last year, what is the annual inflation rate between last year and this year?Show your calculation. Use your calculator to check your answerwww.m WO The country of Swedway monitors price changes on several hundred goods in 4 categories: food, housing, transportation and household goods, in accordance with the following CPI table: Calculate the contribution to inflation for each category and determine the overall inflation rate in Swedway. CATEGORY WEIGHT (%) PRICE CHANGE (%) CONTRIBUTION TO INFLATION RATE Food 40 10 Housing 30 15 Transportation 20 20 Household Goods 10 25 Total 100wing faci 13. In 2018 your annual salary was $54,370 per year and the CPI was 133.4. In 2022 your annual salary was $59,140 and the CPI was 151.2. a. What should your annual salary have been in 2022 if your 2018 annual salary increased at the rate of inflation from 2018 to 2022? Round your answer to the nearest dollar. b. By what percent was your actual 2022 salary above or below your inflation adjusted salary from part (a)? You must specifically state whether it was above or below the inflation adjusted salary. (answer as a % to 2 decimals)
- Real Income Joshua Vermier of Sacramento, California, received a raise after his first year on the job to $44,200 from his initial salary of $40,000. What was Joshua's raise stated as a percentage? Inflation averaged 2.4 percent for the year. Round your answer to one decimal place. What was his real income after the raise? Round your answer to nearest cent. What was his real raise stated as a percentage? Round your answer to one decimal place. %Calculate the CPI of 2009. Calculate the inflation rate of 2009. If your salary in 2008 and 2009 was same, comment on your standard of living in these two years. If the bank interest rate was 9% in 2009, what was the real interest rate in 2009? Answer just part -4 Show all calculation. Answer must be correct.Answer follow image13. In 2018 your annual salary was $54,370 per year and the CPI was 133.4. In 2022 your annual salary was $59,140 and the CPI was 151.2. a. What should your annual salary have been in 2022 if your 2018 annual salary increased at the rate of inflation from 2018 to 2022? Round your answer to the nearest dollar. b. By what percent was your actual 2022 salary above or below your inflation adjusted salary from part (a)? You must specifically state whether it was above or below the inflation adjusted salary. (answer as a % to 2 decimals)
- Congratulations! Your boss has given you a raise. However, you want to know whether your purchasing power has increased, since inflation is also rising. The table below gives you data for wages and the Consumer Price Index (CPI) for the last two years. Wage ($/day) CPI Year 1 $ 2000 CPI 120 Year 2 $2200 CPI 129.6 The nominal percentage increase in your wage is enter your response here%. (Round your answer to one decimal place.) Part 2 The real percentage increase in your wage is enter your response here%. (Round your answer to one decimal place.)Calculate the CPI of 2009. Calculate the inflation rate of 2009. If your salary in 2008 and 2009 was same, comment on your standard of living in these two years. If the bank interest rate was 9% in 2009, what was the real interest rate in 2009? Show all calculation. Answer must be correct.Answer follow imageIf there is an increase in the price of bananas that causes consumers to purchase fewer pounds of bananas and more pounds of grapes, the CPI will suffer from a. substitution bias b. bias due to the introduction of new goods Ocbias due to unmeasured quality change d. base-year bias e none of the answer choices
