Problems 69-72 require the following discussion. The consumer price index (CPI) indicates the relative change in price over time for a fixed basket of goods and services. It is a cost of living index that helps measure the effect of inflation on the cost of goods and services. The CPI uses the base period 1982-1984 for comparison (the CPI for this period is 100). The CPI for March 2015 was 236.12 . This means that $ 100 in the period 1982-1984 had the same purchasing power as $ 236.12 in March 2015. In general, if the rate of inflation averages r percent per annum over n years, then the CPI index after n years is C P I = C P I 0 ( 1 + r 100 ) n where C P I 0 is the CPI index at the beginning of the n -year period. Source: U.S. Bureau of Labor Statistics Consumer Price Index (a) The CPI was 214.5 for 2009 and 236.7 for 2014. Assuming that annual inflation remained constant for this time period, determine the average annual inflation rate. (b) Using the inflation rate from part (a), in what year will the CPI reach 300?
Problems 69-72 require the following discussion. The consumer price index (CPI) indicates the relative change in price over time for a fixed basket of goods and services. It is a cost of living index that helps measure the effect of inflation on the cost of goods and services. The CPI uses the base period 1982-1984 for comparison (the CPI for this period is 100). The CPI for March 2015 was 236.12 . This means that $ 100 in the period 1982-1984 had the same purchasing power as $ 236.12 in March 2015. In general, if the rate of inflation averages r percent per annum over n years, then the CPI index after n years is C P I = C P I 0 ( 1 + r 100 ) n where C P I 0 is the CPI index at the beginning of the n -year period. Source: U.S. Bureau of Labor Statistics Consumer Price Index (a) The CPI was 214.5 for 2009 and 236.7 for 2014. Assuming that annual inflation remained constant for this time period, determine the average annual inflation rate. (b) Using the inflation rate from part (a), in what year will the CPI reach 300?
Problems 69-72 require the following discussion. The
consumer price index (CPI)
indicates the relative change in price over time for a fixed basket of goods and services. It is a cost of living index that helps measure the effect of inflation on the cost of goods and services. The CPI uses the base period 1982-1984 for comparison (the CPI for this period is 100). The CPI for March 2015 was
. This means that
in the period 1982-1984 had the same purchasing power as
in March 2015. In general, if the rate of inflation averages
percent per annum over
years, then the CPI index after
years is
where
is the CPI index at the beginning of the
period.
Source:
U.S. Bureau of Labor Statistics
Consumer Price Index
(a) The CPI was
for 2009 and
for 2014. Assuming that annual inflation remained constant for this time period, determine the average annual inflation rate.
(b) Using the inflation rate from part (a), in what year will the CPI reach 300?
In South Australia (SA), the median hourly earnings for male em-
ployees rose from $32.23 in 2019 to $33.22 in 2020 to $35.00 in 2021.
In comparison, the median hourly earnings for female employees rose
from $30.00 in 2019 to $32.56 in 2020 to $33.33 in 2021. ¹
(a) What was the average rate of change in the median hourly earn-
ings for male employees between 2019 and 2020?
(b) What was the average rate of change in the median hourly earn-
ings for female employees between 2019 and 2020?
(c) What was the average rate of change in the median hourly earn-
ings for female employees between 2019 and 2021?
(d) Based on this data, why can we say that in SA, the median hourly
earnings for female employees is not increasing linearly?
In 2012 the nominal value for household spending on clothing and shoes was equal to $5013m and in 2021 it was $7036m. Using the most appropriate price index from the list below, calculate the percentage change in real household spending on clothing and shoes from 2012 to 2021 and answers the questions below.
2012 2021CPI (Clothing) 961 1057CPI (All groups) 949 1068PPI (Outputs - Clothing and textiles) 1031 1171Import price index (Clothing and textiles) 1436 1306
The percentage change in nominal household spending on clothing and shoes is equal to ______?
Chapter 5 Solutions
Precalculus Enhanced with Graphing Utilities (7th Edition)
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