Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 6, Problem 8WNG
(a)
To determine
The percentage change in prices.
(b)
To determine
The percentage change in prices.
(c)
To determine
The percentage change in prices.
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A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
2020
2021
Karaoke Machines
Price
(Dollars)
20
Quantity
10
15
30
CDs
Quantity
50
60
Price
(Dollars)
13
15
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is
Use 2020 as the base year, and fix the basket at 1 karaoke machine and 5 CDs.)
Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is
use 2020 as the base year.)
Which of the following statements is correct? Check all that apply.
The inflation rate in 2021 is not the same using the two methods.
The CPI holds the basket of goods and services constant.
The GDP deflator allows the basket of goods and services to change.
. (Note:
(Note: Again,
Which of the following indicators is used to measure the overall level of prices for goods and services in
an economy over a period of time? Options: A) Gross Domestic Product (GDP) B) Consumer Price Index (
CPI) C) Unemployment rate D) Balance of trade
The Consumer Price Index (CPI) is a measure of the
average change in price over time from a designated
reference period, at which it equals 100. The index is
based on prices of basic consumer goods and services.
The table provided lists the CPI for several years from
1960 to 2012. If the price change in cars parallels the
change in the CPI, what would a car sell for (to the
nearest dollar) in 2012 if a comparable model sold for
$7,500 in 1999?
Year
CPI
1960
29.6
1973
1986
44.4
109.6
156.9
1999
2012
229.6
In 2012, a car would sell for approximately $ 58,176
(Round to the nearest dollar.)
Chapter 6 Solutions
Macroeconomics
Ch. 6.1 - Prob. 1STCh. 6.1 - Prob. 2STCh. 6.1 - In year 1, your annual income is 45,000 and the...Ch. 6.2 - Prob. 1STCh. 6.2 - Prob. 2STCh. 6 - Prob. 1QPCh. 6 - Prob. 2QPCh. 6 - Prob. 3QPCh. 6 - Prob. 4QPCh. 6 - Prob. 5QP
Ch. 6 - Prob. 6QPCh. 6 - Prob. 7QPCh. 6 - Prob. 8QPCh. 6 - Prob. 9QPCh. 6 - Prob. 10QPCh. 6 - Prob. 11QPCh. 6 - Prob. 12QPCh. 6 - Prob. 13QPCh. 6 - Prob. 14QPCh. 6 - Prob. 1WNGCh. 6 - Prob. 2WNGCh. 6 - Prob. 3WNGCh. 6 - Prob. 4WNGCh. 6 - Prob. 5WNGCh. 6 - Prob. 6WNGCh. 6 - Prob. 7WNGCh. 6 - Prob. 8WNGCh. 6 - Prob. 9WNGCh. 6 - Prob. 10WNG
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