Suppose the Consumer Price Index for 2012 was 121.8 and for 2014 it was 125.2. (a) Determine the purchasing power of the dollar in 2012 and 2014 relative to the base year 2002. (b) Compute the purchasing power of the dollar in 2014 relative to 2012. (a) The purchasing power of the dollar in 2012 is. (Round to three decimal places as need.) The purchasing power of the dollar in 2014 is. (Round to three decimal places as need.) (b) The purchasing power of the dollar in 2014 relative to 2012 is. (Round to three decimal places as need.)
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- Suppose the Consumer Price Index for 2012 was 121.4 and for 2014 it was 124.4. (a) Determine the purchasing power of the dollar in 2012 and 2014 relative to the base year 2002. (b) Compute the purchasing power of the dollar in 2014 relative to 2012. ..... (a) The purchasing power of the dollar in 2012 is (Round to three decimal places as need.) The purchasing power of the dollar in 2014 is (Round to three decimal places as need.) (b) The purchasing power-of the dollar in 2014 relative to 2012 is. (Round to three decimal places as need.)Over the last 10 years, the average rate of inflation has been 1.61%. what is the purchasing power of a dollar today in terms of what a dollar could purchase in 2008?Suppose the Consumer Price Index in 2019 is 131.9, with 2002 as the base year. (a) What is the purchasing power of the dollar in 2019 compared to 2002? (b) What is the real income, relative to 2002, of a wage earner whose income amounted to 62,900 in 2019?
- What is the growth in year 2009 currency of 7,400 paid for an item in 2009 that now in 2020 costs 10,200 given the baseline index in 2009 was 218.5 and the equivalent index in 2020 is 256.5?Assume that a loaf of bread cost $0.25 in 1950 and an equivalent loaf of bread cost $2.25 in 2000. Based on the cost of this loaf of bread, what is the value of a 1950-dollar in 2000-dollars?In a certain foreign country in 2009, the local currency (the ‘Real’) was pegged to the U.S. dollar at the rate of $1 U.S. = 1 Real. The Real was then devalued over the next five years so that $1 U.S. = 2 Real. A bank in the north-eastern United States bought assets in this country valued at 100 million Real in 2009. Now that it is year 2014, what is the worth of this bank’s investment in U.S.dollars? Should the bank sell out of its investment in this foreign country or should it buy more assets?
- 132.) You decide to lend your sister, who has never defaulted on a loan (ie. ρd =0), $1000 for one year. At the end of the year, she pays you $1050. Suppose you expected the inflation rate, πe, to be 3%. However, at the end of the year, you learn that the inflation rate was actually 6%. What was the realrate of interest that you expected to receive? Are you better or worse off than expected? 2%; worse 2%; better 1%; worse 1%; betterIf the CPI in 2011 was 136.6, determine the purchasing power of the dollar compared with the base year 2002 (CPI = 100).Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $9.00. In year one, $72.00 will buy(0.11, 0.13, 4.5, 8, 9) baskets, and in year two, $72.00 will buy (0.11, 0.13, 4.5, 8, 9) baskets. .
- Assume that in 1974, interest rates were 7.443% and the rate of inflation was 12.065%. What was the real interest rate in 1974? How would the purchasing power of your savings have changed over the year? The real rate of interest in 1974 was %, which means that the purchasing power of your savings would have by (Round to three decimal places.) decreased increasedSearch for the “World Economic Outlook Database” on the internet and locate the most recent version. Use this database to select inflation data (units of percentage change) for Germany, Japan, and the United States for the period 1990 to 2010. Construct a table of annual inflation rates for these countries. Now construct a graph using annual inflation rates on the vertical axis and the year on the horizontal axis. Plot the annual inflation rates from your table in three separate lines on the same graph. How would you compare the experiences of these three countries based on your graph?A consumer expenditure survey reports the following information on consumer spending: 2020 2021 Price Quantity Price Quantity Product (1) $10 7 $10 7 Product (2) $6 10 $8 12 Product (3) $12 5 $14 10 a) Using 2020 as the base year, by how much does a "cost of products" index increase between 2020 and 2021? b) Calculate the inflation rate between 2020 and 2021, using the CPI you calculated in (a)