Suppose the median household earned $9,096 in 1976 and $52,382 in 2016. During that time, also suppose the CPI rose from 53.6 to217.11.Instructions: Round your answers to one decimal place.a. The total growth rate in nominal median household income from 1976 to 2016 was:b. The total growth rate in real median household income from 1976 to 2016 was:%.%.

a. The growth rate in nominal median household income can be calculated as follows: Growth rate in…

Answered: Suppose the median household earned…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter5: National Income Accounting

Section: Chapter Questions

Problem 6E

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The median Canadian household earned $9,397 in 1973 and $70,400 in 2019. During that time, though, the CPI rose from 23.7 to 131.5. Instructions: Enter your answer as a percentage rounded to one decimal place. a. The total growth rate in nominal median household income from 1973 to 2019 was %.
Suppose the median household earned $9,242 in 1976 and $52,624 in 2016. During that time, also suppose the CPI rose from 45.6 to 219.75. Instructions: Enter your answer as a percentage rounded to one decimal place. a. The total growth rate in nominal median household income from 1976 to 2016 was b. The total growth rate in real median household income from 1976 to 2016 (use the 2016 year's dollar values in your computations) was
Suppose the median household earned $9,199 in 1976 and $52,188 in 2016. During that time, also suppose the CPI rose from 54.7 to 210.09. Instructions: Enter your answer as a percentage rounded to one decimal place. a. The total growth rate in nominal median household income from 1976 to 2016 was b. The total growth rate in real median household income from 1976 to 2016 was
As a result of a drought, prices and produced quantities in a country change as follows: Assume that the economy produces and consumes only the above agricultural products.a) Calculate the nominal GDP and the real GDP for the year 2021 with the base year 2020.b) By how many percent have the prices of goods increased?c) Calculate the CPI for the year 2021 according to Laspeyres and Paasche.d) Describe the general differences between the CPI and the GDP deflator.
Suppose that the CPI does indeed overstate the rate of inflation. When the CPI increases by 5% and household incomes increase by 5%, we should conclude that the real incomes of households: a) increased. b) stayed constant. c) decreased. d) increased more slowly than inflation.
In Brazil, the reference base period for the CPI is 2000. By 2016, prices had risen by 187 percent since the base period. The inflation rate in Brazil in 2017 was 3.4 percent, and in 2018, the inflation rate was 3.7 percent. Calculate the CPI in Brazil in 2017 and 2018. Brazil's CPI in 2019 was 318. Did Brazil's cost of living increase or decrease in 2019? The CPI in Brazil for 2017 is . >>> Answer to 1 decimal place. The CPI in Brazil for 2018 is >>> Answer to 1 decimal place. Brazil's cost of living in 2019. A. decreased B. changed by an unknown amount C. increased O D. remained the same Click to select your answer(s). DII DD 80 000 000 F8 F9 F6 F7 esc F4 F5 F1 F2 F3 & @ # % 7 8 %24
Consider the following basket of student essentials: 2019 2020 Burritos $6.30 $6.60 Pizzas $9.90 $10.00 Movie Tickets $10.00 $10.50 Energy Drinks $4.99 $5.99 a. Using 2019 as the base year, what is the CPI in 2019? b. Assume students buy 30 burritos, 25 pizzas, 15 movie tickets, and 200 energy drinks each year. What is the CPI in 2020 using 2019 as a base year? What is the inflation rate? Would this rate be higher or lower if students bought more energy drinks?
In Brazil, the reference base period for the CPI is 2000. By 2016, prices had risen by 187 percent since the base period. The inflation rate in Brazil in 2017 was 3.4 percent, and in 2018, the inflation rate was 3.7 percent. Calculate the CPI in Brazil in 2017 and 2018. Brazil's CPI in 2019 was 318. Did Brazil's cost of living increase or decrease in 2019? The CPI in Brazil for 2017 is >>> Answer to 1 decimal place.
In 2014, Apple’s revenue was $183 billion, and it grew to $267 billion in 2018. a. What is the nominal growth rate of Apple’s revenue from 2014 to 2018? b. What is the value of Apple’s 2018 revenue in 2014 dollars? (In 2014, the CPI was 236.7, and in 2018, it was 251.1.) c. What is the real growth rate of Apple’s revenue from 2014 to 2018?
In Brazil, the reference base period for the CPI is 2000. By 2016, prices had risen by 187 percent since the base period. The inflation rate in Brazil in 2017 was 3.4 percent, and in 2018, the inflation rate was 3.7 percent. Calculate the CPI in Brazil in 2017 and 2018. Brazil's CPI in 2019 was 318. Did Brazil's cost of living increase or decrease in 2019? The CPI in Brazil for 2017 is >>> Answer to 1 decimal place. The CPI in Brazil for 2018 is >>> Answer to 1 decimal place. Brazil's cost of living in 2019. O A. decreased O B. changed by an unknown amount O C. remained the same O D. increased Click to select your answer(s). DD DII F10 I F9 20 888 F8 F7 F6 F5 F4 F3 esc F2 F1 & ! @ # 2 3 4 1 Q W E tah H K * 00 T %24
Assume that people in an economy only consume the following goods shown in the table: Rice Meat Juice Year 1 price P2 P4 P1 Year 1 quantity 100 100 200 Year 2 price P2 P6 P2 Year 2 quantity 100 100 200 Calculate the % change in the price of every goods. Using the same method with the CPI, calculate the % change of the overall price level. If you were to learn that juice increased in size from Year 1 to Year 2, should that information affects your calculation of the inflation rate? If so, how? If you were to learn that juice introduced new flavors in Year 2, should that information affect your calculation of the inflation rate? If so, how?
Say in a hypothetical economy, people consume only two goods – nasi lemak premium and shoes. The market basket of goods used to compute the CPI has 40 units of nasi lemak premium and 15 units of shoes. Nasi Lemak Premium Shoes 2010 price (in RM) 12 10 2011 price (in RM) 20 20 a)How much have prices changed for nasi lemak premium and shoes over the one-year period? b)Suppose the base year was 2005 and total expenditures for the base year was RM500. Calculate the inflation rate. c)Do these price changes affect all consumers the same way? Explain.

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