Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
7th Edition
ISBN: 9780134472669
Author: Blanchard
Publisher: PEARSON
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Question
Chapter 2, Problem 7QAP
a)
To determine
To calculate: the cost of consumer price basket in the current (2013) and base year (2008).
b)
To determine
To calculate the cost of the consumer price basket in the current and subsequent years.
c)
To determine
To compute: the
d)
To determine
To calculate: the inflation rate.
e)
To determine
To find: the year in which the inflation is negative.
f)
To determine
To find the source of inflation in 2011 and the way it was different from 2009 and 2010.
g)
To determine
To find the number of baskets purchased.
h)
To determine
To find the implication of a fall in price of gas on the relative prices for the construction of CPI.
i)
To determine
To fill the table with CPI and inflation rate.
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Q24 MCQ
The index used most often to measure prices paid by households is the:
a) producer price index
b) consumer price index
c) wholesale price index
d) GDP deflator
Question No.9:
The consumer price index (CPI) is a fixed-weight index. It compares the price of
a fixed bundle of goods in one year with the price of the same bundle of goods
in some base year. Calculate the price of a bundle containing 100 units of good
X, 150 units of good Y, and 25 units of good Z in 2011, 2012, and 2013.
Convert the results into an index by dividing each bundle price figure by the
bundle price in 2011. Calculate the percentage change in your index between
2011 and 2012 and again between 2012 and 2013. Was there inflation between
2012 and 2013?
QUANTITY
2011
2012
2013
GOOD
CONSUMED
PRICE
PRICE
PRICE
100
$1.00
$1.50
$1.75
Y
150
1.50
2.00
2.00
25
3.00
3.25
3.00
The gross domestic product (GDP) of the United States is defined as the
all
in a given period of time.
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in
2018.
2018 GDP
Scenario
Included
Excluded
Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2018. It sells the set of
tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2018.
(Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of
production of the two-door coupe on GDP.)
Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 27, 2018.
Roadway Motors imports the convertible into the United States on May 18, 2018.
The Jones family buys an antique silver platter at an auction in upstate New York on March 27, 2018.
Zippycar, a U.S.…
Chapter 2 Solutions
Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
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