1. The following table shows the quantity of popcorn, Coke, and movie tickets a typicalconsumer buys. It also shows the prices for those goods in 2014 and 2015.GoodQuantityPopcornCokeMovieTicket435Price in2014$4$6$2Assume that 2015 is the base year. Show your work and all formulas used for full credit.a. What was the price of the "basket" in 2014?Price in2015$5$8$3b. What was the price of the "basket" in 2015?c. Calculate the CPI for 2014d. Calculate the CPI for 2015e. Did the consumer experience inflation or deflation (circle one)? INFLATION DEFLATIONf. Calculate the rate of inflation or deflation between 2014 and 2015 using the CPI numbers youcalculated above.2. a. In an economy, the CPI went from 150 in 2014 to 130 in 2015. Did this economy haveinflation or deflation between 2014 and 2015 (circle one)? INFLATION DEFLATIONb. What was the rate of inflation or deflation during that time? Show your work for full credit.

Consumer Price Index refers to the change in prices paid by the individual or consumer for the goods…

2. a. In an economy, the CPI went from 150 in 2014 to 130 in 2015. Did this economy have inflation or deflation between 2014 and 2015 (circle one)? INFLATION DEFLATION b. What was the rate of inflation or deflation during that time? Show your work for full credit.

2. a. In an economy, the CPI went from 150 in 2014 to 130 in 2015. Did this economy have inflation or deflation between 2014 and 2015 (circle one)? INFLATION DEFLATION b. What was the rate of inflation or deflation during that time? Show your work for full credit.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter24: Measuring The Cost Of Living

Section: Chapter Questions

Problem 3PA

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Question

1. The following table shows the quantity of popcorn, Coke, and movie tickets a typical
consumer buys. It also shows the prices for those goods in 2014 and 2015.
Good
Quantity
Popcorn
Coke
Movie
Ticket
4
3
5
Price in
2014
$4
$6
$2
Assume that 2015 is the base year. Show your work and all formulas used for full credit.
a. What was the price of the "basket" in 2014?
Price in
2015
$5
$8
$3
b. What was the price of the "basket" in 2015?
c. Calculate the CPI for 2014
d. Calculate the CPI for 2015
e. Did the consumer experience inflation or deflation (circle one)? INFLATION DEFLATION
f. Calculate the rate of inflation or deflation between 2014 and 2015 using the CPI numbers you
calculated above.
2. a. In an economy, the CPI went from 150 in 2014 to 130 in 2015. Did this economy have
inflation or deflation between 2014 and 2015 (circle one)? INFLATION DEFLATION
b. What was the rate of inflation or deflation during that time? Show your work for full credit.

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5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Amount Spent Price Price Amount Price Amoun Amount Price Spent t Spent Spent Apples Bananas $0.50 $0.20 $0.65 $2.00 10 $0.75 $0.25 $0.70 $0.85 $0.25 $0.90 2.05 $0.88 $0.29 $0.95 12 Grapes Raspberries 1 Total Price Index Inflation 2. 1.9 2.13 Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004. Who in an economy is the big winner from inflation and why?
1. The following table shows the quantity of popcorn, Coke, and movie tickets a typical consumer buys. It also shows the prices for those goods in 2014 and 2015. Good Quantity Price in Price in 2014 2015 Рорсorn 3 $5 $4 Coke 5 $6 $8 Movie $4 $5 Ticket Assume that 2014 is the base year. Show your work and all formulas used for full credit. a. What was the price of the “basket" in 2014? b. What was the price of the "basket" in 2015? c. Calculate the CPI for 2014 d. Calculate the CPI for 2015 e. Did the consumer experience inflation or deflation? Calculate the rate of inflation or deflation between 2014 and 2015 using the CPI numbers you calculated above.
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Please give a detailed solution with an explanation. Please double-check your sources and make sure the answer is 100% correct. Make sure all questions are answered too.Blank Answer #1:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #2:this year's pricesthe base year's pricesBlank Answer #3:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #4:this year's pricesthe base year's pricesBlank Answer #5:produced domesticallybought by consumers