Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 1E
(a)
To determine
Calculate the salary of the workers in 2015 in respect to the value in 1900.
(b)
To determine
Calculate the salary of a worker in 2015 in respect to the value in 1932.
(c)
To determine
Calculate the value in 2015 in respect to 1940s.
(d)
To determine
Calculate the value of product in 2015 in respect to the value in 1972.
(e)
To determine
The value of a movie ticket in 2015 in respect to the value in 1977.
(f)
To determine
Calculate the value of the good in respect to the value in 1991.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A consumer expenditure survey reports the following information on consumer spending:
2020
2021
Price
Quantity
Price
Quantity
Product (1)
$10
7
$10
7
Product (2)
$6
10
$8
12
Product (3)
$12
5
$14
10
a) Using 2020 as the base year, by how much does a "cost of products" index increase between 2020 and 2021?
b) Calculate the inflation rate between 2020 and 2021, using the CPI you calculated in (a)
Suppose the Consumer Price Index in 2019 is
131.9,
with 2002 as the base year.
(a) What is the purchasing power of the dollar in 2019 compared to 2002?
(b) What is the real income, relative to 2002, of a wage earner whose income amounted to
62,900
in 2019?
Congratulations! Your boss has given you a raise.
However, you want to know whether your purchasing power has increased, since inflation is also rising. The table below gives you data for wages and the Consumer Price Index (CPI) for the last two years.
Wage ($/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.)
Chapter 8 Solutions
Macroeconomics (Fourth Edition)
Knowledge Booster
Similar questions
- (a) The Consumer Price Index (CPI) in December 1980 was 86.3. The Consumer Price Index as of December 2021 is 278.8. If the minimum wage would have increased at the same rate as the CPI from 1980 to 2021, what would the hourly minimum wage be in 2021? (b) Using the CPI, if the CPI in the base year 1982-1984 is 100 and the CPI in 1980 is 86.3, then what would the real minimum wage be in 1981? (c) Using the CPI, if the CPI in the base year 1982-1984 is 100 and the CPI in 2021 is 278.8, then what would t he real minimum wage be in 2021?arrow_forwardThe price of gold (end-of-year closing price in dollars per troy ounce) is shown in the table below. The CPI index for the given years is shown to the right. Complete parts (a) through (c) below. Average Annual Consumer Price Index (CPI) Year 1986 1996 2006 2016 Year 1986 1996 2006 2016 CPI 109.6 156.9 201.6 240.0 Price $281 $434 $896 $1118 a. The prices shown in the table above are not adjusted for inflation. Revise the above table to express all prices in terms of 2016 dollars. Year 1986 1996 2006 2016 2016 2$ $4 Price (Round to the nearest cent as needed.)arrow_forward(i)Given that 2019 is the base year, calculate the CPI for 2020 and determine the inflation rate between 2019 and 2020. (ii)Provide two reasons that the CPI may not reflect the actual cost of living of households accurately.arrow_forward
- 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.)arrow_forwardUsing your knowledge of price indexes, answer the following questions. (a) In a base year, what will the value of a price index always be? (b) If producers face rising costs of production, which price index will rise first? (c) Which price index captures changes in the largest variety of goods and services?arrow_forwardSuppose the basket of goods used for a Canadian university student price index consists of 2 terms of full-time study and 4 textbooks. Prices of the goods by year are as follows: Year Full-time tuition for Price of One one term Textbook 2018 $3,605 $115 2019 $3,631 $139 2020 $3,924 $189 a) Using 2018 as the base year, compute the university student price index for 2018, 2019 and 2020, and the inflation rate between 2018 and 2019, and between 2019 and 2020. b) Suppose that all university textbooks were produced in the United States. Would Canada's GDP Deflator increase more, less or the same rate as the student price index (based only on these two goods)?arrow_forward
- 3) In 1990, the CPI was 130.7 and in 1996 the CPI was 156.9. What was the rate of inflation over this period of time? 4) If a price index rose from 14.3 in 1985 to 34.1 in 2010, what would be the inflation rate over the period?arrow_forwardThe table below shows products purchased by a representative household over the years 2022 and 2023: Items X Y Z 2022 Price $2 $1 $3 Quantity 25 12 15 OF SOCI 2023 Price $2.20 $1.10 $3.30 Quantity 28 15 16 (a) Calculate the consumer price index (CPI) for the year 2022 and 2023, taking 2022 as the base year, and determine the inflation rate between 2022 and 2023. (b) Does this inflation rate measure the actual change in cost of living encountered by households accurately? SUSS Explain.arrow_forwardSearch for the “World Economic Outlook Database” on the internet and locate the most recent version. Use this database to select inflation data (units of percentage change) for Germany, Japan, and the United States for the period 1990 to 2010. Construct a table of annual inflation rates for these countries. Now construct a graph using annual inflation rates on the vertical axis and the year on the horizontal axis. Plot the annual inflation rates from your table in three separate lines on the same graph. How would you compare the experiences of these three countries based on your graph?arrow_forward
- The average price of tuition and fees at private 4-year colleges and universities increased from $8,300 in 1991 to $23,000 in 2006. Calculate the relative change in price from 1991 to 2006 and compare it to the overall rate of inflation as measured by the Consumer Price Index. Average tuition and fees in private 4-year colleges and universities increased by ■%. (Round to the nearest integer as needed.) Average Annual Consumer Price Index (CPI) (1982- 1984=100) Year CPI Year CPI Year CPI 1976 56.9 1989 124.0 2001 177.1 1977 60.6 1990 130.7 2002 179.9 1978 65.2 1991 136.2 2003 184.0 1979 72.6 1992 140.3 2004 188.9 1980 82.4 1993 144.5 2005 1981 90.9 1994 148.2 2006 1982 96.5 1995 152.4 2007 1983 99.6 1996 156.9 1984 103.9 1997 160.5 2009 1985 107.6 1998 163.0 2010 109.6 1999 166.6 2011 1986 1987 113.6 2000 172.2 2012 1988 118.3 195.3 201.6 207.3 2008 215.3 214.5 218.1 224.9 229.6arrow_forwardSuppose the Consumer Price Index for 2012 was 121.8 and for 2014 it was 125.2. (a) Determine the purchasing power of the dollar in 2012 and 2014 relative to the base year 2002. (b) Compute the purchasing power of the dollar in 2014 relative to 2012. (a) The purchasing power of the dollar in 2012 is. (Round to three decimal places as need.) The purchasing power of the dollar in 2014 is (Round to three decimal places as need.) (b) The purchasing power of the dollar in 2014 relative to 2012 is. (Round to three decimal places as need.)arrow_forwardBelow is a list of annual CPI values for the years 2000-2003. Using these values please calculate the average annual rate of inflation over this period. Table Year CPI 2000 200.2 2001 205.6 2002 208.2 2003 209.1 4.45% 1.46% 2.97%arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Macroeconomics: Principles and Policy (MindTap Co...EconomicsISBN:9781305280601Author:William J. Baumol, Alan S. BlinderPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Principles and Policy (MindTap Co...
Economics
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning