Econ Macro (book Only)
6th Edition
ISBN: 9781337408745
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 7, Problem 7P
To determine
Inflation, deflation, Hyperinflation and disinflation during subsequent years.
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The following table shows a person's nominal and real wages for three years, as well as the price level (price index) for each
year, using the first year as the base year. Fill in the blanks in the table. Then calculate the annual inflation rate for each year
(not including the base year).
Instructions: Round your answers to 2 decimal places.
Nominal Wage ($)
Real Wage ($)
Inflation Rate (%)
Year
Price Level
1
7.00
140
5.00
2.
9.00
7.00
150.00
3
11
160.00
7.50
YEAR 2019 2018 2017 2016
CPI 213.8 212.2 202.6 200.2
Use the table to Calculate the inflation rate for the year 2018.
Does the inflation rate you calculated above fall into the South Africainflation target?
please help
2) Measuring Inflation-35 points
Using the Vulcan CPI information in Table 2, calculate the inflation rate for each year, only if possible. (Show all work in
context.)
Table 2
1810
1811
1812
1813
1814
1815
CPI
178.402
192.709
206.803
209.553
212.593 216.694
|(1776=100)
Chapter 7 Solutions
Econ Macro (book Only)
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- This table indicates the historical level of the Consumer Price Index (CPI) for the United States for 1921, 1922, and 1923. Complete the table by (1) selecting the inflation rates for 1922 and 1923, and (2) indicating for each year whether there has been inflation, deflation, or hyperinflation. Year CPI Inflation Rate Change in Price Level 1921 17.9 — — 1922 16.8 1923 17.1 What rates of inflation for 1924 would be consistent with disinflation between 1923 and 1924? Check all that apply. 1.7% 11.8% 51.8% 1.8% What rates of inflation for 1924 would be consistent with hyperinflation? Check all that apply. 15.0% -1.8% 100.0% 120.0%arrow_forwardHere are some recent data on the US consumer price index: Year CPI Year CPI Year CPI 2016 240.0 2011 224.9 2006 201.6 2015 237.0 2010 218.1 2005 195.3 2014 236.7 2009 214.5 2004 188.9 2013 233.0 2008 215.3 2003 184.0 2012 229.6 2007 207.3 2002 179.9 Compute the inflation rate of each year 2003-2016 and determine which were years of inflation. In which years did deflation occur? In which years did disinflation occur? Was there hyperinflation in any year?arrow_forwardCongratulations! Your boss has given you a raise. However, you want to know whether your purchasing power has increased, since inflation is also rising. The table below gives you data for wages and the Consumer Price Index (CPI) for the last two years. Wage ($/day) CPI Year 1 $ 2000 CPI 120 Year 2 $2200 CPI 129.6 The nominal percentage increase in your wage is enter your response here%. (Round your answer to one decimal place.) Part 2 The real percentage increase in your wage is enter your response here%. (Round your answer to one decimal place.)arrow_forward
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