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- Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of 20,000. However, if the inflation rate is 6 per year, how much buying power will that 20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.At the beginning of 2007 the CPI was 154. At the beginning of 2008 the CPI was 169. What is the rate of inflation over that time period? Question 8 options: a) 20% b) 109% c) 9.7% d) 8.8%The monthly market basket for consumers consists of pizza, t-shirts, and rent. The table below shows market basket quantities and prices for the base year (Year 1) and in the following two years. The inflation rate between Year 1 and Year 2 is The inflation rate between Year 2 and Year 3 is Product Pizza T-Shirts Rent Base Year (Year 1) Quantity 15 3 1 Price in the Base Year % (Round both answers to one decimal place.) %. $2.50 $15.00 $450.00 Price in Year 2 $3.13 $13.50 $495.00 Price in Year 3 $3.75 $15.00 $585.00
- Assume that the CPI in 2013 is 115. The inflation rate is 1.5% in 2014 and 2.5% in 2015. What is the value of the CPI in 2014 and 2015? A) 113.5 and 110 B) 116.5 and 119 C) 116.5 and 117.5 D) 116.7 and 119.6 E) 117.5 and 119.6A 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)c) Now, suppose the inflation from 2012 to 2013 was 11.2%. Given that the CPI for this basket of goods was 155.3 in 2012, find the CPI in 2013. Round to 2 decimal places. The CPI of the basket of goods in 2013 was 172.69 . (d) Use your (rounded and correct) answer from part (c) to complete the following. The price of this market basket of recreational water equipment on Echo Island was $255 in 2009 (the base year). Then, the price of the same market basket in 2013 was $ (round to the nearest cent).
- The monthly market basket for consumers consists of pizza, t-shirts, and rent. The table below shows market basket quantities and prices for the base year (Year 1) and in the following two years. Product Pizza T-Shirts Rent Base Year (Year 1) Quantity 15 4 1 Price in the Base Year $3.00 $15.00 $400.00 The inflation rate between Year 1 and Year 2 is%. (Round both answers to one decimal place.) The inflation rate between Year 2 and Year 3 is % Price in Year 2 $3.75 $13.50 $440.00 Price in Year 3 $4.05 $12.75 $520.00The monthly market basket for consumers consists of pizza, t-shirts, and rent. The table below shows market basket quantities and prices for the base year (Year 1) and in the following two years. Product Pizza T-Shirts Rent Base Year (Year 1) Quantity 10 3 1 The inflation rate between Year 1 and Year 2 is The inflation rate between Year 2 and Year 3 is Price in the Base Year $3.50 $10.00 $500.00 Price in Year 2 $4.38 $9.00 $550.00 Price in Year 3 $4.73 $10.50 $600.00 %. (Round both answers to one decimal place.) %.(e) Now suppose that a new market bundle is defined; "the market bundle" is now 6 burgers, 2 patties and 4 pizzas. Compute the CPI for the three years, using this "market bundle" and using 1990 as the base year. (f) what is the new inflation rate from 2000 to 2010, using the CPI you calculated in (e).
- Table 24-7 The table below lists the prices of chips and salsa for the year 2018, 2019, 2020. Assume that the typical consumer buys 8 bags of chips and 4 jars of salsa each month, and that 2019 is the base period. Year 2018 2019 2020 Price of Chips $2.50 $2.40 $2.60 Price of Salsa $2.50 $2.55 $2.75 Refer to Table 24-7. Calculate the inflation rate for 2020The 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.Assume all household consumption items are locally produced as shown in thetable in Question (a). A typical household in the economy consumes 5 units ofrice, 4 units of shirt and 2 units of shoes in 2018. Using 2018 as the base year,measure the CPI for 2019 and 2020 and the inflation rate between 2018 and 2019,and also between 2019 and 2020. Explain why the inflation rate is different fromthose computed from (a)(ii).
