Fruit prices and the amounts consumed for 2010 and 2018 are shown. Use 2010 as the base. Fruit Bananas (pound) Grapefruit (each) Apples (pound) Strawberries (basket) Oranges (bag) Price $0.25 0.29 0.34 1.00 0.90 Fruit Bananas Grapefruit Apples Strawberries Oranges 2010 Quantity 100 50 85 8 6 Price $0.35 0.46 0.69 2.60 1.11 2018 Quantity 123 59 85 11 7 Click here for the Excel Data File a. Determine the simple price indexes. (Round your answers to 2 decimal places.) Simple index

Fruit prices and the amounts consumed for 2010 and 2018 are shown. Use 2010 as the base. Fruit Bananas (pound) Grapefruit (each) Apples (pound) Strawberries (basket) Oranges (bag) Price $0.25 0.29 0.34 1.00 0.90 Fruit Bananas Grapefruit Apples Strawberries Oranges 2010 Quantity 100 50 85 8 6 Price $0.35 0.46 0.69 2.60 1.11 2018 Quantity 123 59 85 11 7 Click here for the Excel Data File a. Determine the simple price indexes. (Round your answers to 2 decimal places.) Simple index

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 5SCQ: How to Measure Changes in the Cost of Living introduced a number of different price indices. Which...

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Gmpurts cnter the calcula Week 3 Homework sPunauo:i spaubueon. X 13 newconnect.mheducation.com/flow/connect.html Saved 3 Homework G) The following table gives the the value of the consumer price index for 2007 through 2015. Consumer Price Index Percentage Increase Year 207.3 2007 215.3 2008 214.5 2009 218.1 2010 224.9 2011 2012 229.6 233.0 2013 236.7 2014 237.0 2015 Instructions: To answer the following questions, complete the percentage increase column in the rounded to two decimal places and include a negative sign ) where appropriate. a) What was the inflation rate in 2009? b) What was the percentage increase of the average price level from 2008 to 2015? 9% inflation was lowest in (Click to select) c) Inflation was highest in (Click to select) 10 of 15 Prev Ne e ere to search w SUS
Table 24-3 The table below lists the per pound prices of meat and potatoes for the months of January, February, and March. Assume that the typical consumer buys 25 pounds of meat and 15 pounds of potatoes each month, and that January is the base period. 10. Refer to Table 24-3. Calculate the cost of a basket of goods for each month. 11. Refer to Table 24-3. Calculate the consumer price index for February and March. 12. Refer to Table 24-3. Calculate the inflation rate for February.
Discuss the problems with the Consumer Price Index.
Define the term Consumer Price Index?
Monthly Consumer Price Index from January 2015 to December 2020 (Source: STATIN) Month 2015 2016 2017 2018 2019 2020 January 85.4 88.6 90.9 95.2 97.4 102.5 February 84.8 87.9 91.1 95.1 97.4 103.2 March 85.3 87.8 91.4 95.0 98.2 102.9 April 85.4 87.5 91.7 94.6 98.3 103.7 May 85.9 87.7 91.8 94.6 99.1 103.8 June 86.3 88.5 92.4 95.0 99.0 105.2 July 87.0 88.9 92.9 95.9 100.0 105.7 August 87.7 89.3 93.2 96.8 100.8 105.9 September 88.1 89.7 93.8 97.9 101.2 106.1 October 88.4 89.9 94.2 98.6 101.8 106.9 November 88.8 90.3 94.7 98.6 103.2 107.6 December 89.0 90.5 95.2 97.6 103.6 109.0 From the Table above: In December 2018, Mr. Logan Hepburn began receiving a salary of $100,000 per month.Up to December 2020, his salary has remained unchanged. What is his ‘‘real wage’’ in December…
A small economy produces three main products, products A, B, and C. The following table indicates the prices and quantities for the three products from 2013 to 2016. Product A Product B Product C Year Price Quantit Price Quantit Price Quantit 2013 24.75 17 13 6 27.5 10 12 5.5 6 57.5 4 6 14 14 10 2014 2015 2016 60.5 63.5 66 18 14 17 14 Using 2013 as the base year, calculate the real GDP for the years 2014. Select one: а. 523.25 b. 492 С. 722.75 d. None of the answers are correct e. 680.5 O CO
The following table lists the per gallon prices of gas and milk for the months of April, May, and June. Assume that the typical consumer buys 60 gallons of gas and 4 gallons of milk each month, and that April is the base period. What is the consumer price index for May?
Your first job after graduation is in the statistical office of the small country Exemplia, where most people are employed in olive groves and love eating olives. Based on the most important transactions in Exemplia summarised in below table, you are tasked with calculating the consumer price index with base year 2020. 2020 2021 Price Quantity Price Quantity Olives (domestic consumption) 2 2,000 2.20 2,100 Olives (export) 2 4,000 2.20 3,600 Potatoes imported 1 1,000 1 800 Government‘s purchase of pencils 0.50 10,000 1 6,000 Olive picking machines (imported) 100 10 110 10 a) Determine a suitable basket. b) Using basket from your answer to question (a), calculate the CPI for 2020 and 2021, and the inflation rate for 2021. c) Briefly discuss the most important differences between the calculation of the CPI and the GDP deflator and their consequences.
Your first job after graduation is in the statistical office of the small country Exemplia, where most people are employed in olive groves and love eating olives. Based on the most important transactions in Exemplia summarised in below table, you are tasked with calculating the consumer price index with base year 2020. 2020 2021 Price Quantity Price Quantity Olives (domestic consumption) 2 2,000 2.20 2,100 Olives (export) 2 4,000 2.20 3,600 Potatoes imported 1 1,000 1 800 Government‘s purchase of pencils 0.50 10,000 1 6,000 Olive picking machines (imported) 100 10 110 10 Using basket from your answer to question (a), calculate the CPI for 2020 and 2021, and the inflation rate for 2021.
Your first job after graduation is in the statistical office of the small country Exemplia, where most people are employed in olive groves and love eating olives. Based on the most important transactions in Exemplia summarised in below table, you are tasked with calculating the consumer price index with base year 2020. 2020 2021 Price Quantity Price Quantity Olives (domestic consumption) 2 2,000 2.20 2,100 Olives (export) 2 4,000 2.20 3,600 Potatoes imported 1 1,000 1 800 Government‘s purchase of pencils 0.50 10,000 1 6,000 Olive picking machines (imported) 100 10 110 10 Determine a suitable basket.
The island nation of Coronia subsists entirely on pancakes and syrup. That is, they produce and consume only pancakes and syrup in the following amounts: Pancake Mix (cases) Maple Syrup (gallons) Quantity Price Quantity Price 2019 16 5 8 30 2020 48 6 10 50 (a) Using a method like the CPI, compute the CPI in 2019 and 2020 and percentage change in the overall price level from 2019 to 2020 (inflation rate). Use 2019 as the base year and fix the market basket at 4 pancakes and 2 syrups. (b) Using a method like the GDP deflator, compute the GDP deflator in 2019 and 2020 and percentage change in the overall price level from 2019 to 2020 (inflation rate). Use 2019 as the base year. (c) Is there a difference in the inflation rate using the two methods? Explain why or why not.
How is the producer price index related to the consumer price index?