Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 20, Problem 20.4.5PA
To determine
The actual description of the consumer price index and inflation rate.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose that people expect inflation to be 3 percent but that, in fact, prices rise by 10 percent. Briefly describe whether this unexpectedly high inflation would either a) help or hurt the following people, and b) why.a. A person receiving Social Security;b. A homeowner with a fixed-rate mortgage;c. a union worker in the second year of a labor contract with fixed wages;d. a family on food stamps (SNAP) who needs to buy groceries;e. a person trying to pay off their variable-rate charge cards;f. A restaurant that has not bought supplies yet and can't change the menu prices.
Briefly state two reasons why inflation may be considered to be an economic problem.
Analyze the article and explain the concept of inflation using the news article given below (incorporate the prices of food, oil, power, etc in the concept)
The rate of increase in the prices of goods remained within the government’s target range despite the spike in oil prices and the impact of Typhoon Odette (Rai) on basic goods.
The Philippine Statistics Authority (PSA) on Friday, February 4, reported that the country’s inflation rate inched down to 3% in January 2022, within the target range of 2% to 4%. This is lower than the rebased figure of 3.2% for December 2021.
Inflation in Metro Manila eased to 1.3% in January 2022 from the 2.1% in December 2021. This was due to a deflation of 3% in food and non-alcoholic beverages.
Meanwhile, inflation in areas outside the National Capital Region went up to 3.5% from 3.4%.
The PSA noted that at the national level, food prices remained steady in January, despite effects seen in the aftermath of weather disturbances.
It was also during…
Chapter 20 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 20 - Prob. 20.1.1RQCh. 20 - Prob. 20.1.2RQCh. 20 - Prob. 20.1.3RQCh. 20 - Prob. 20.1.4RQCh. 20 - Prob. 20.1.5RQCh. 20 - Prob. 20.1.6RQCh. 20 - Prob. 20.1.7PACh. 20 - Prob. 20.1.8PACh. 20 - Prob. 20.1.9PACh. 20 - Prob. 20.1.10PA
Ch. 20 - Prob. 20.1.11PACh. 20 - Prob. 20.1.12PACh. 20 - Prob. 20.1.13PACh. 20 - Prob. 20.1.14PACh. 20 - Prob. 20.2.1RQCh. 20 - Prob. 20.2.2RQCh. 20 - Prob. 20.2.3RQCh. 20 - Prob. 20.2.4PACh. 20 - Prob. 20.2.5PACh. 20 - Prob. 20.2.6PACh. 20 - Prob. 20.2.7PACh. 20 - Prob. 20.2.8PACh. 20 - Prob. 20.3.1RQCh. 20 - Prob. 20.3.2RQCh. 20 - Prob. 20.3.3RQCh. 20 - Prob. 20.3.4PACh. 20 - Prob. 20.3.5PACh. 20 - Prob. 20.3.6PACh. 20 - Prob. 20.3.7PACh. 20 - Prob. 20.3.8PACh. 20 - Prob. 20.4.1RQCh. 20 - Prob. 20.4.3RQCh. 20 - Prob. 20.4.4PACh. 20 - Prob. 20.4.5PACh. 20 - Prob. 20.4.6PACh. 20 - Prob. 20.4.7PACh. 20 - Prob. 20.4.9PACh. 20 - Prob. 20.4.10PACh. 20 - Prob. 20.5.1RQCh. 20 - Prob. 20.5.2RQCh. 20 - Prob. 20.5.3PACh. 20 - Prob. 20.5.4PACh. 20 - Prob. 20.5.5PACh. 20 - Prob. 20.5.6PACh. 20 - Prob. 20.5.7PACh. 20 - Prob. 20.5.8PACh. 20 - Prob. 20.6.1RQCh. 20 - Prob. 20.6.2RQCh. 20 - Prob. 20.6.3RQCh. 20 - Prob. 20.6.4RQCh. 20 - Prob. 20.6.5PACh. 20 - Prob. 20.6.6PACh. 20 - Prob. 20.6.7PACh. 20 - Prob. 20.6.8PACh. 20 - Prob. 20.6.9PACh. 20 - Prob. 20.7.1RQCh. 20 - Prob. 20.7.3RQCh. 20 - Prob. 20.7.5RQCh. 20 - Prob. 20.7.6PACh. 20 - Prob. 20.7.8PACh. 20 - Prob. 20.7.9PACh. 20 - Prob. 20.1RDECh. 20 - Prob. 20.5RDECh. 20 - Prob. 20.7RDECh. 20 - Prob. 20.10RDECh. 20 - Prob. 20.11RDECh. 20 - Prob. 20.1CTECh. 20 - Prob. 20.2CTE
Knowledge Booster
Similar questions
- Describe what is the Specific inflation rate? Give an example?arrow_forwardOn the way into school you hear the following report on the radio: "inflation for the month of February was 0.4%. Over the year inflation was 2.2%." Which of the following options best explains what these figures mean? Select one: a. Inflation in February was much slower than it was in other months from the past year. b. The prices of household necessities, excluded household luxuries, increased by 2.2%, compared to 12 months ago. c. The prices of the things a typical urban consumer buys, as estimated by the Bureau of Labor Statistics, increased on average 2.2%, compared to 12 months ago. d. The government increased prices by 2.2% over the past year in order to keep pace with production costs.arrow_forwardMark Lai, a student of agricultural science in the developing country Mikatra, notes that the demand for rice increased substantially over the last ten years. He attributes this to the substantial growth in population during this period. Although rice cultivation in Mikatra is still labor-intensive, Mark observes that the inflation-adjusted wages for farm workers in the rice industry have more or less remained constant during this period, even though the supply of rice increased. This was contrary to Mark's expectations as inflation in Mikatra during this period was not very high. Which of the following, if true, is most likely to explain this outcome? A.Rice and other cereals form a smaller proportion of the food budget of higher-income individuals. B.The government of another major rice-producing country, Langun, subsidizes its rice farmers to keep its prices competitive in the global market. C.The government of Mikatra has recently set a price floor in the wheat market. D.Following…arrow_forward
- Let's say the inflation rate in an economy turns out to be higher than expected. Will the following people, or bank, be affected? Helped, hurt, or unaffected? a. Someone keeping a large quantity of cash in a shoe box in their closet. b. A bank lending money at a fixed rate of interest c. A union member with a COLA wage contract d. A person who is not due to receive a pay raise for another 11 monthsarrow_forwardWhat are the results when inflation decreasesarrow_forwardFederal Reserve chairman Jerome Powell has expressed that the U.S. Federal Reserve is conducting actively purchasing U.S. government securities out of a desire to INCREASE the U.S. inflation rate up to 2.0 percent per year. In the past, the Federal Reserve has expressed a fear of deflation, which some countries around the world (Japan, and some European nations) have experienced. Use either your statsbook or the internet to provide a description of how the inflation rate for the U.S. has changed over time. In doing so, identify what represents a HIGH inflation rate for the U.S. and what represents a LOW inflation rate.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning