Question

Three goods are consumed in an economy during years 1 and 2. The table shows prices...

Three goods are consumed in an economy during years 1 and 2. The table shows prices (P1 and P2) for each good, and it shows the market basket that is used to calculate the consumer price index. The base year is year 1.

Good

P1

P2

Basket

Milk

(gallons)

$4

$4.20

10

Beef

(pounds)

$2

$2.20

20

Carrots

(bags)

$3

$3.60

5

Enter numbers in each blank, rounded to two decimal places as necessary. Do not enter commas or percent signs. Enter 3,000 as 3000 and enter 5% as 5.

The cost of the basket in year 1 is $ and the cost of the basket in year 2 is $ ___.

The value of the CPI in year 1 is and the value of the CPI in year 2 is ____.

The price of milk increased by ______%,

the price of beef increased by _____%, and the price of carrots increased by _____%.

The overall inflation rate is _____%.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Three goods are consumed in an economy during years 1 and 2. The table shows prices...
Three goods are consumed in an economy during years 1 and 2. The table shows prices (P1 and P2) for each good, and it shows the market basket that is used to calculate the consumer price index. The base year is year 1. Good P1 P2 Basket Milk (gallons) $4 $4.20 12 Beef (pounds) $2 $2.20 20 Carrots (bags) $3 $3.60 8 Enter numbers in each blank, rounded to two decimal places as necessary. The value of the CPI in...
1. Good Price in 2015 Price in 2016 A $2.10 $2.25 B $5.10 $5.80 C $3.05...
1. Good Price in 2015 Price in 2016 A $2.10 $2.25 B $5.10 $5.80 C $3.05 $2.90 Consider the prices of three goods as given in the table above. Who is likely to feel like the inflation rate is higher? Group of answer choices Someone who buys 10 units of A, 10 units of B, and 5 units of C Someone who buys 2 units of A, 1 unit of B, and 2 units of C Someone who buys 10...
1.The information in the table below identifies the three goods that are being used to calculate...
1.The information in the table below identifies the three goods that are being used to calculate the Consumer Price Index. The base year is 2016. Item Quantity in Basket 2016 Prices 2017 Prices Movie tickets 9 $5.00 $7.50 Bags of popcorn 4 $3.00 $3.00 Cups of soda 12 $1.00 $1.50 What is the cost of the market basket in 2016? Enter a number rounded to two decimal places as necessary with no dollar sign. 2. The information in the table...
The following table shows some data for an economy that produces only two goods: milk and...
The following table shows some data for an economy that produces only two goods: milk and honey. Year Milk Honey Price Quantity Price Quantity (Dollars) (Quarts) (Dollars) (Quarts) 2016 1 200 2 100 2017 1 400 2 200 2018 2 400 4 200 The following table shows nominal GDP, real GDP, and the GDP deflator for each year listed. Year Nominal GDP Real GDP GDP Deflator (Dollars) (Dollars) 2016 400 400 100 2017 800 800 100 2018 1,600 800 200...
Q.1 The table below shows this market basket and the price of each good in 2015...
Q.1 The table below shows this market basket and the price of each good in 2015 and 2016. For the questions below, assume that 2015 is the base year. 2015 2016 Good Quantity Unit price Unit price Textbooks 7 $180.00 $210.00 Pizza 9 12.00 10.00 Beer 12 10.00 12.00 Compute the CPI in 2016 and the inflation rate between 2015 and 2016. Suppose in 2016, you buy 10 textbooks instead of 7, will your answers in (a) and (b) change?...
The table below shows the prices (P) and quantities (Q) of a typical consumption basket, which...
The table below shows the prices (P) and quantities (Q) of a typical consumption basket, which consists of only product X and Y, for a country in several years: a. Using year 2000 as the base year, calculate the CPI in 2000, 2007 and 2008. b. What was the annual inflation rate between year 2007 and 2008? c. A person took out a one-year loan of $550 from the bank in 2007 and repaid $594 in 2008. What was the...
The following table lists the prices of a small market basket purchased in both 2008 and...
The following table lists the prices of a small market basket purchased in both 2008 and 2018. Assuming that this basket of goods is representative of all goods and services, compute the price of the market basket in (a) 2008 and (b) 2018 and then answer two questions about price levels and real income. Price per Unit a. Cost of Market Basket in 2008 b. Cost of Market Basket in 2018 Item Quantity 2008 2018 (Quantity*2008 price) (Quantity*2018 price) Coffee...
Consider the following table which shows the prices and quantities of economy G. Use 2012 as...
Consider the following table which shows the prices and quantities of economy G. Use 2012 as the base year. Good 2012 price 2012 quantity 2013 price 2013 quantity A $2 250 $3 200 B $3 300 $4 300 C $4 400 $5 350 D $3 200 $6 180 Calculate nominal GDP in 2013 Calculate real GDP in 2013 Does real GDP increase or decrease between 2012 and 2013? Explain without calculations.
Bilbo can consume two goods, good 1 and good 2 where X1 and X2 denote the...
Bilbo can consume two goods, good 1 and good 2 where X1 and X2 denote the quantity consumed of each good. These goods sell at prices P1 and P2, respectively. Bilbo’s preferences are represented by the following utility function: U(X1, X2) = 3x1X2. Bilbo has an income of m. a) Derive Bilbo’s Marshallian demand functions for the two goods. b) Given your answer in a), are the two goods normal goods? Explain why and show this mathematically. c) Calculate Bilbo’s...
1. Country A with a civilian non-institutionalized population of 237 mil (all over age 16), has...
1. Country A with a civilian non-institutionalized population of 237 mil (all over age 16), has 156 mil employed and 47 mil unemployed persons, of the unemployed 5 mil is frictional and 8 mil structural. a) What is the size of the labor force? ………………………………………… b) What is the actual unemployment rate? ……………………………………. c) What is the Cyclical unemployment? ................................................. d) What is the Natural Rate of Unemployment (NRU)? ……………………… e) Is this economy in a recession or a boom?...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT