The table below shows the total expenditure on a basket of goods and services. Use this information to calculate index numbers for the cost of a basket of goods and services in each period. Assume Period 3 is the base year. Round to one decimal place. Provide your answer below: Period 1 Period 2 Period 3 Period 4 Total Expenditure $3, 100 $3,350 $3,400 $3,450 Period 1- Period 2 - Period 3 Period 4 Index Number
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- The table below shows the total expenditure on a basket of goods and services. Use this information to calculate index numbers for the cost of a basket of goods and services in each period. Assume Period 1 is the base year. Round to one decimal place. Provide your answer below: Period 1 Period 2 Period 3 Period 4 Total Expenditure $1,100 $1,350 $1,400 $1,450 Period 1 Period 2-Period 3 = Period 4 = | Index NumberA consumer expenditure survey reports the following information on consumer protein spending: Fish Chicken Beef Multiple Choice Multiple Choice 0.9 percent 1.4 percent Price $ 5.80 1.8 percent $3 $ 3.10 Using 2019 as the base year, by how much does a "cost of protein" index decrease between 2019 and 2020? 3.6 percent 2019 Quantity 5 14 7 Using 2019 as the base year, by how much does a "cost of protein index decrease between 2019 and 2020? Price $7 $ 1.50 $5 2020 Quantity 6 12 10 GAssume that the top 3 yearly purchases of the average college student are: Gel ink pens (10 pens), energy drinks (200 cans), and Hydro Flask water bottles (1). Calculate the cost of the basket in each year. Year Price of Price of Price of pens Hydro Flask 2015 $2.00 2016 $2.85 2017 $2.90 2018 $3.00 energy drinks Answer: 1.90 1.90 1.95 2.00 35 40 45 55 What is the cost of the basket in 2016? Cost of Basket
- 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 period 1, assuming Period 2 is the base year. (Round to 1 decimal place.) Total Expenditure Index Number 22. Period 1 $1,020 Period 2 $1,475When computing the cost of the basket of goods and services purchased by a typical consumer, which of the following changes from year to year? Select one: a.the quantities of the goods and services purchased b.the prices of the goods and services c.the goods and services making up the basket d.None of the answers are correctProblem Set 2: Consumer Price Index Suppose that people consume only three goods, as shown in this table: Tennis Balls Golf Balls Bottles of Pepsi Cola 2017 price € 3 € 5 € 1 2017 quantity 100 100 200 2018 price € 3 € 6 € 2 2018 quantity 100 100 200 What is the percentage change in the price of each of the three goods? Using a method similar to the CPI, compute the percentage change in the overall price If you were to learn that a bottle of Pepsi Cola increased in size from 2017 to 2018, should that information affect your calculation of the inflation rate? If so, how?
- Problem Set 2: Consumer Price Index Suppose that people consume only three goods, as shown in this table: Tennis Balls Golf Balls Bottles of Pepsi Cola 2017 price € 3 € 5 € 1 2017 quantity 100 100 200 2018 price € 3 € 6 € 2 2018 quantity 100 100 200 What is the percentage change in the price of each of the three goods? Using a method similar to the CPI, compute the percentage change in the overall price If you were to learn that a bottle of Pepsi Cola increased in size from 2017 to 2018, should that information affect your calculation of the inflation rate? If so, how? If you were to learn that Pepsi Cola introduced new flavors in 2018, should that information affect your calculation of the inflation rate? If so, how?Use the figure below to answer the following questions. Household expenditure (thousands of dollars per year) 32- 24 16 00 8 16 24 32 40 Household income (thousands of dollars per year) Figure 1A.3.1 The slope of the line in Figure 1A.3.1 isA) Elucidate how an economy’s income must always equal its expenditure. B) Assume a hypothetical economy that produces only one good – Peanut Butter. In year 1, the quantity produced is 4 packs and the price is Rs.400 per pack. In year 2, the quantity produced is 5 packs and the price is Rs.500 per pack. In year 3, the quantity produced is 6 packs and the price is Rs.600 per pack. Year 1 is the base year. 1) What is nominal GDP for each of these three years? 2) What is real GDP for each of these years? 3) What is the GDP deflator for each of these years? 4) What is the percentage growth rate of real GDP from year 2 to year 3? 5) What is the inflation rate as measured by the GDP deflator from year 2 to year 3? 6) In this one-good economy, how might you have answered parts (4) and (5) without first answering parts (2) and (3)?
- a) Elucidate how an economy’s income must always equal its expenditure. b) Assume a hypothetical economy that produces only one good – Peanut Butter. In year 1, the quantity produced is 4 packs and the price is Rs.400 per pack. In year 2, the quantity produced is 5 packs and the price is Rs.500 per pack. In year 3, the quantity produced is 6 packs and the price is Rs.600 per pack. Year 1 is the base year. a) What is nominal GDP for each of these three years? b) What is real GDP for each of these years? c) What is the GDP deflator for each of these years? d) What is the percentage growth rate of real GDP from year 2 to year 3? e) What is the inflation rate as measured by the GDP deflator from year 2 to year 3? f) In this one-good economy, how might you have answered parts (d) and (e) without first answering parts (b) and (c)? kindly solve all the parts8 n9 on 10 tion 11 estion 12 K aestion 13 Question 14 Question 15 Question 16 Question 17 Suppose in 2019, the cost of a market basket of goods was $1,995. In 2021, the cost of the same market basket of goods was $2.119. Calculate the price index for 2021, using the price index formula, assume 2019 is the base year (Enter your response as an index number rounded to one decimal place.) Type here to search H ENCA simple economy produces only lumber, granola bars, and computers. Annual production of these goods for 3 years are shown below along with their prices. If 2020 is the base year, the value of 2021 production in constant dollars is $ Don't include $ or any commas or spaces in your answer. 2019 2020 2021 Production of lumber (units) Price of lumber ($ per unit) Production of granola bars (units) Price of granola bars ($ per unit) Production of computers (units) Price of computers ($ per unit) 100 120 130 100 120 125 500 600 650 2.50 50 40 50 300 320 350 2.