Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 23, Problem 7SPPA
To determine
The house and the jacket that has lower real price.
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In 2007, Annie, an 80-year-old, is telling her granddaughter Mary about the good old days.
Annie says that in 1932, you could buy a nice house for $17,000 and a jacket for $6.
Mary says that in 2007 such a house costs $250,000 and such a jacket costs $55.
The CPI in 1932 was 14.4 and in 2007 it was 207.3.
.....
The house with the lower price is the.
and the jacket with the lower price is the
O A. $17,000 house in 1932; $55 jacket in 2007
B. $250,000 house in 2007; $6 jacket in 1932
OC. $250,000 house in 2007; $55 jacket in 2007
D. $17,000 house in 1932; $6 jacket in 1932
The price tag on a tennis ball in 1975 read $0.10, and the price tag on a tennis ball in 2005 read $1.00. The CPI in 1975 was 52.3, and the CPI in 2005 was 191.3. Refer to Scenario 24-1. The price of a 1975 tennis ball in 2005 dollars is Question 2 options: $0.03. $0.27. $0.37. $1.00.
A Consumer Expenditure Survey in Sparta shows that people buy only juice and cloth.
In 2015, the year of the Consumer Expenditure Survey and also the reference base year, the average household spent
$24 on juice and $20 on cloth.
The price of juice in 2015 was $3 a bottle, and the price of cloth was $4 a yard. In 2016, juice is $4 a bottle and cloth is $3 a yard.
Calculate the CPI in 2016 and the inflation rate between 2015 and 2016.
1- The CPI in 2016 is…
2- The inflation rate between 2015 and 2016 is ……percent.
Chapter 23 Solutions
Foundations of Economics (8th Edition)
Ch. 23 - Prob. 1SPPACh. 23 - Prob. 2SPPACh. 23 - Prob. 3SPPACh. 23 - Prob. 4SPPACh. 23 - Prob. 5SPPACh. 23 - Prob. 6SPPACh. 23 - Prob. 7SPPACh. 23 - Prob. 8SPPACh. 23 - Prob. 9SPPACh. 23 - Prob. 10SPPA
Ch. 23 - Prob. 1IAPACh. 23 - Prob. 2IAPACh. 23 - Prob. 3IAPACh. 23 - Prob. 4IAPACh. 23 - Prob. 5IAPACh. 23 - Prob. 6IAPACh. 23 - Prob. 7IAPACh. 23 - Prob. 8IAPACh. 23 - Prob. 9IAPACh. 23 - Prob. 10IAPACh. 23 - Prob. 1MCQCh. 23 - Prob. 2MCQCh. 23 - Prob. 3MCQCh. 23 - Prob. 4MCQCh. 23 - Prob. 5MCQCh. 23 - Prob. 6MCQCh. 23 - Prob. 7MCQCh. 23 - Prob. 8MCQ
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