The CPI in Canada in 2015.

Question

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Answer 1

Question

Chapter 23, Problem 1SPPA

To determine

To calculate:

The CPI in Canada in 2015.

Expert Solution & Answer

Explanation of Solution

The CPI in 2014 is 25.2% which is CPI1, and the inflation rate in 2015 is 1.1%. Therefore, with the execution of these figures in the following equation, CPI for 2015 can be found (CPI2).

I=CPI 1−CPI 2CPI 1×100

Substituting the values,

1.1%=x−25.2%25.2%×1001.1%×25.2%=(x−25.2%)×10027.72=100x−252027.72+2520=100x

2547.72100=100x10025.48%=x

Therefore, the CPI in 2015 is 25.8%.

Economics Concept Introduction

Consumer price index:

Consumer price index is a measure to check the changes in the price levels, where prices of the basket of goods and services are measured against the base year.

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Students have asked these similar questions

Consumers of the economy purchase all primary products, manufacturing products and services shown in the table. Manufacturing products and services are all produced by the domestic economy. However, for each year, 3/4 of the primary products is imported, and 1/4 is produced domestically. Set 1973 as the base year.Find the % change in prices for primary products, manufacturing products and services, respectively, from 1973 to 1974. Find the CPI for both years. Calculate the corresponding inflation rate from 1973 to 1974. Find the nominal and real GDP for both years. Hence, find the GDP deflator for both years. Calculate the corresponding inflation rate from 1973 to 1974. The above table is set up in such a way to mimic the actual data of the inflation rates calculated from the CPI and the GDP deflator, respectively, for the US during the first oil crisis in 1973- 1974. Use your results to explain how and why the two numbers differ by such a wide margin during that period.

One criticism of the CPI is that the market basket used in the CPI may not reflect current spending priorities. Which of the following is an example of this? Personal computers were less powerful in 1982-1984. Cell phones are more commonly purchased today than in 1993-1995. Using extreme couponing methods, a family can save hundreds of dollars a month. Goods cost more in Alaska and Hawaii due to transportation costs.

The CPI for 2019 in the United States was 256, which means the typical market basket purchased that year would cost a. 156 percent more than the same market basket purchased in the base year b. 56 percent more than the same market basket purchased in the base year c. more than the same market basket purchased during any previous year d. 256 percent more than the same market basket purchased the previous year e. 156 percent more than the same market basket purchased the previous year

Answer 2

Question

Chapter 23, Problem 1SPPA

To determine

To calculate:

The CPI in Canada in 2015.

Expert Solution & Answer

Explanation of Solution

The CPI in 2014 is 25.2% which is CPI1, and the inflation rate in 2015 is 1.1%. Therefore, with the execution of these figures in the following equation, CPI for 2015 can be found (CPI2).

I=CPI 1−CPI 2CPI 1×100

Substituting the values,

1.1%=x−25.2%25.2%×1001.1%×25.2%=(x−25.2%)×10027.72=100x−252027.72+2520=100x

2547.72100=100x10025.48%=x

Therefore, the CPI in 2015 is 25.8%.

Economics Concept Introduction

Consumer price index:

Consumer price index is a measure to check the changes in the price levels, where prices of the basket of goods and services are measured against the base year.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 23, Problem 1SPPA

To determine

To calculate:

The CPI in Canada in 2015.

Expert Solution & Answer

Explanation of Solution

The CPI in 2014 is 25.2% which is CPI1, and the inflation rate in 2015 is 1.1%. Therefore, with the execution of these figures in the following equation, CPI for 2015 can be found (CPI2).

I=CPI 1−CPI 2CPI 1×100

Substituting the values,

1.1%=x−25.2%25.2%×1001.1%×25.2%=(x−25.2%)×10027.72=100x−252027.72+2520=100x

2547.72100=100x10025.48%=x

Therefore, the CPI in 2015 is 25.8%.

Economics Concept Introduction

Consumer price index:

Consumer price index is a measure to check the changes in the price levels, where prices of the basket of goods and services are measured against the base year.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 23, Problem 1SPPA

To determine

To calculate:

The CPI in Canada in 2015.

Expert Solution & Answer

Explanation of Solution

The CPI in 2014 is 25.2% which is CPI1, and the inflation rate in 2015 is 1.1%. Therefore, with the execution of these figures in the following equation, CPI for 2015 can be found (CPI2).

I=CPI 1−CPI 2CPI 1×100

Substituting the values,

1.1%=x−25.2%25.2%×1001.1%×25.2%=(x−25.2%)×10027.72=100x−252027.72+2520=100x

2547.72100=100x10025.48%=x

Therefore, the CPI in 2015 is 25.8%.

Economics Concept Introduction

Consumer price index:

Consumer price index is a measure to check the changes in the price levels, where prices of the basket of goods and services are measured against the base year.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 23, Problem 1SPPA

To determine

To calculate:

The CPI in Canada in 2015.

Expert Solution & Answer

Explanation of Solution

The CPI in 2014 is 25.2% which is CPI1, and the inflation rate in 2015 is 1.1%. Therefore, with the execution of these figures in the following equation, CPI for 2015 can be found (CPI2).

I=CPI 1−CPI 2CPI 1×100

Substituting the values,

1.1%=x−25.2%25.2%×1001.1%×25.2%=(x−25.2%)×10027.72=100x−252027.72+2520=100x

2547.72100=100x10025.48%=x

Therefore, the CPI in 2015 is 25.8%.

Economics Concept Introduction

Consumer price index:

Consumer price index is a measure to check the changes in the price levels, where prices of the basket of goods and services are measured against the base year.

Answer 6

Chapter 23, Problem 1SPPA

To determine

To calculate:

The CPI in Canada in 2015.

Expert Solution & Answer

Explanation of Solution

The CPI in 2014 is 25.2% which is CPI1, and the inflation rate in 2015 is 1.1%. Therefore, with the execution of these figures in the following equation, CPI for 2015 can be found (CPI2).

I=CPI 1−CPI 2CPI 1×100

Substituting the values,

1.1%=x−25.2%25.2%×1001.1%×25.2%=(x−25.2%)×10027.72=100x−252027.72+2520=100x

2547.72100=100x10025.48%=x

Therefore, the CPI in 2015 is 25.8%.

Economics Concept Introduction

Consumer price index:

Consumer price index is a measure to check the changes in the price levels, where prices of the basket of goods and services are measured against the base year.

Answer 7

Chapter 23, Problem 1SPPA

To determine

To calculate:

The CPI in Canada in 2015.

Answer 8

Expert Solution & Answer

Explanation of Solution

The CPI in 2014 is 25.2% which is CPI1, and the inflation rate in 2015 is 1.1%. Therefore, with the execution of these figures in the following equation, CPI for 2015 can be found (CPI2).

I=CPI 1−CPI 2CPI 1×100

Substituting the values,

1.1%=x−25.2%25.2%×1001.1%×25.2%=(x−25.2%)×10027.72=100x−252027.72+2520=100x

2547.72100=100x10025.48%=x

Therefore, the CPI in 2015 is 25.8%.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Consumer price index:

Consumer price index is a measure to check the changes in the price levels, where prices of the basket of goods and services are measured against the base year.

Answer 12

Ch. 23 - Prob. 1SPPA Ch. 23 - Prob. 2SPPA Ch. 23 - Prob. 3SPPA Ch. 23 - Prob. 4SPPA Ch. 23 - Prob. 5SPPA Ch. 23 - Prob. 6SPPA Ch. 23 - Prob. 7SPPA Ch. 23 - Prob. 8SPPA Ch. 23 - Prob. 9SPPA Ch. 23 - Prob. 10SPPA

The CPI in Canada in 2015.

To calculate: The CPI in Canada in 2015.

Explanation of Solution

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Chapter 23 Solutions

To calculate:

The CPI in Canada in 2015.