MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
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Question
Chapter 6.A, Problem 6TY
To determine
(a)
The total spending accounted for three items in 1987 with the help of given table.
To determine
(b)
The weighted average of the percentage increases of the three prices by using the computed weighted expenditure in part 1.
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Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following
table shows information on the market basket for the CSPI and the prices of each of the goods in 2018, 2019, and 2020.
The expenditure on each item in the market basket and the total dollar expenditure on market basket are shown for 2018.
Perform these same calculations for 2019 and 2020, and enter the results in the following table.
Notebooks
Calculators
Large coffees
Energy drinks
Textbooks
Total cost
Price index
Price
Quantity in Market Basket (Dollars)
5
10
1
150
50
10
Suppose the base year for this price index is 2018.
100
Between 2018 and 2019, the CSPI increased by
2
100
2018
Expenditure Price
(Dollars) (Dollars)
7
50
100
150
100
1,000
1,400
100
110
1
3
120
2019
In the last row of the table, calculate and enter the value of the CSPI for the remaining years.
Price
Expenditure
Expenditure
(Dollars) (Dollars) (Dollars)
11
% Between…
Calculate the four components of aggregate expenditure and GDP for the following economy using data from the table below.Instructions: Enter your responses as whole numbers. If you are entering any negative numbers, be sure to include a negative (-) sign in front of those numbers.
GDP
Consumption expenditures
$600
Exports
$75
Government purchases of goods and services
$200
Construction of new homes and apartments
$100
Sales of existing homes and apartments
$200
Imports
$100
Beginning-of-year inventory stocks
$100
End-of-year inventory stocks
$150
Business fixed investment
$100
Government payments to retirees
$100
Household purchases of durable goods
$150
Consumption expenditures: $
Investment expenditures: $
Government Purchases: $ Net Exports: $ GDP: $
The table below shows the total expenditure on a basket of goods and services; use this information to calculate the index
number for the cost of a basket of goods and services in periods 1, 2 and 4, assuming Period 3 is the base year. Write the
index numbers in order from Period 1 to Period 4. (Round to 1 decimal place. Include the index number for period 3 in your
answer.)
Provide your answer below:
Period 1
Period 2
Period 3
Period 4
Total Expenditure
$12, 240
$12,900
$13,530
$14,250
Index Number
Knowledge Booster
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