Suppose that the total expenditures for a typical household in 2015 equaled $2,500 per month, while the cost of purchasing exactly the same items in 2017 was $3,000. If 2015 is the base year, the CPI for 2017 equals: 0.83 1.20 1.00 1.25
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- The cost of the CPI basket in base-period prices is $200 and the cost of the CPI basket in current-period prices is $450. The CPI in the current year is O 450. O 225. O 300. O 250. O 44,44,Consider the CPI table below. Year CPI 1984 103.9 2000 172.2 2001 177.1 2002 179.9 2003 184.0 If a particular car cost $13000 in 1984, Using the CPI, which is the best estimate for the cost of a similar model in 2002? $21546 $22171 O $22509 O $23022Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was S77: in 2013. the basket's cost was $82; and in 2014, the basket's cost was $90. The value of the CPI in 2014 was O a. 109.8 and the inflation rate was 9.8%. O b. 109.8 and the inflation rate was 16.9%. O c. 116.9 and the inflation rate was 9.8. O d. 116.9 and the inflation rate was 16.9%.
- Suppose a loaf of bread sold for $3.00 in 2016. The price of bread then increases to $3.60 in 2017. The price index for bread in 2017, considering 2016 as the base year, is O 1.20 83.33 120 100 202014 2015 Item Quantity Price Price 4 €5.00 €7.50 Y €3.00 €3.00 4 €1.00 €1.50 The information in the table above gives the 2014 reference base period CPI basket and prices used to construct the CPI for a small nation. It also has the 2015 prices. What is the value of the CPI for 2015? О 133 O 140 O 100 O 75Why is the PCE deflator a preferred measure of consumer prices over the CPI? O the PCE data is released monthly while the CPI data are quarterly the PCE also is subject to substitution bias, but it does not include new goods O It is not a fixed basket, so it does not have the substitution bias present in the CPI O It is a fixed basket of goods whereas the CPI is not a fixed basket
- Price (2009) $55 $35 Quantity (2010) Price Quantity (2009) Item Sneakers (2010) $60 $40 2 2. Manicures Consumers in a country buy only two goods, sneakers and manicures. The prices and quantities purchased by urban households are in the table above. The reference base year is 2009. For these data, the CPI for 2010 is O 100 O 110 O 160 O 10 O 145.Using the table below, find the real value of a payment of $2.200 to be received each year given the following CPI values: Next find the amount that this $2,200 should be adjusted to in order to keep its real value at $2,200. Instructions: Round your answers to two decimal places. Real value of Cost-of-living adjusted payment 2,200 66 O Year CPI $2,200 2015 100 2,200 2016 103 2135.92 O 2017 105 2095.24 O 110 110 2000 220 2018Consider a simple economy that only produces: pencils, t-shirts, and bananas. Using the information in the table below, calculate the inflation rate for 2020, as measured by the consumer price index. Quantity Base year price (2010) Product Pencils T-shirts Bananas Price (2019) $3 $7 Price (2020) $3.50 $6.75 $2 15 $5 5 $1 $1.50 $1.75 O 1.9% O 1.1% O -1.1% O 1.5% O -1.9%
- * Constant or real dollars are terms describing income after adjustment for inflation. Following chart outlines Zara's (parent company Inditex) annual revenue between 2007 - 2021: Based on the revenue and consumer price index outlined, calculate Zara's 2021 revenue in 2007 real dollars. Year Average CPI Sales in Billion US Dollars 2007 207.34 12.93 2008 215.25 15.11 2009 214.56 15.55 2010 218.08 16.64 2011 224.92 18.94 2012 229.59 20.51 2013 232.95 22.38 2014 236.72 23.75 2015 237.00 23.20 2016 240.01 25.45 2017 245.12 28.91 2018 251.10 30.81 2019 255.65 31.54 2020 258.85 23.55 2021 270.97 31.76 22.74 Billion USD 41.5 Billion USD 31.76 Billion USD 24.3 Billion USD 9.89 Billion USDThe table shows consumer price index data for the United Kingdom. Based on this information, what is the rate of inflation in 2018? UK CONSUMER PRICE INDEX YEAR CPI 2013 98.2 2014 99.6 2015 100 2016 101 2017 103.6 2018 106 O 2.32% O 0.40% 1.43% O 2.57%The reference base period for the CPI is 1982-1984. In January 2018, the CPI was 247.9. What does this number tell us? This number tells us that the of the prices paid by urban consumers for a fixed basket of consumer goods and services was O A average; 147.9 percent higher in January 2018 than the average of 1982-1984 B. inflation rate; 47.9 percent per year OC. inflation rate; 147.9 percent per year O D. average; 247.9 percent higher in January 2018 than the average of 1982-1984