Question

A typical household in Orangeland consumes only orange juice and shorts. Last year, which was the...

A typical household in Orangeland consumes only orange juice and shorts. Last year, which was the base year, the household spent $400 on juice and $120 on shorts. In the base year, juice was $2 a bottle and shorts were $10 a pair. This year, juice is $3 a bottle, shorts are $12 a pair, and a typical household has bought 180 bottles of juice and 14 pairs of shorts.

a) What is the basket used in the CPI?

b) Calculate the CPI in the current year.

c) Calculate the inflation rate in the current year.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A typical household in Orangeland consumes only orange juice and shorts. Last year, which was the...
A typical household in Orangeland consumes only orange juice and shorts. Last year, which was the base year, the household spent $400 on juice and $120 on shorts. In the base year, juice was $2 a bottle and shorts were $10 a pair. This year, juice is $3 a bottle, shorts are $12 a pair, and a typical household has bought 180 bottles of juice and 14 pairs of shorts. a) What is the basket used in the CPI? b)...
A typical family on Sandy Island consumes only juice and cloth. Last​ year, which was the...
A typical family on Sandy Island consumes only juice and cloth. Last​ year, which was the base​ year, the family spent $20 on juice and $30 on cloth. In the base​ year, juice was ​$5 a bottle and cloth was $5 a length. This​ year, juice is ​$2 a bottle and cloth is $7 a length. Calculate a. The CPI basket. b. The CPI in the current year. c. The inflation rate in the current year. Answer: A: The CPI...
24. Consider an economy with only two goods: yogurt and coconut water. In 2014, the typical...
24. Consider an economy with only two goods: yogurt and coconut water. In 2014, the typical family bought 4 cups of yogurt at 50¢ per cup and 2 bottles of coconut water for $9 per bottle. In Year 2017, the typical family bought 12 cups of yogurt at 75¢ per cup and 3 bottles of coconut water for $10 per bottle. The CPI for 2017 is: a. 100. b. 115. c. 126. d. 130. 25. Suppose we shopped for a...
The typical household buys these basket goods Quantities 2017 2018 2019 Toothpaste 10 2.99 2.85 3.15...
The typical household buys these basket goods Quantities 2017 2018 2019 Toothpaste 10 2.99 2.85 3.15 Shampoo 5 5.99 5.96 6.99 Soap 15 3.15 3.00 3.50 Price of the basket CPI Fill in the missing value using 2018 as the base year Calculate the inflation rate from 2017 to 2018 Calculate the inflation rate from 2018 to 2019
1. Which of the following statements is (are) correct? (x) The term “inflation” is used to...
1. Which of the following statements is (are) correct? (x) The term “inflation” is used to describe a situation in which the overall level of prices in the economy is increasing and deflation occurs if the price level is decreasing. (y) The inflation rate is calculated as the percentage change in the price level from the previous period. (z) If inflation occurs, the typical household will spend more dollars to maintain the same standard of living. A. (x), (y) and...
Placerville is a small country that produces only 4 products: shoes, hamburgers, and shirts.   2012 (Base...
Placerville is a small country that produces only 4 products: shoes, hamburgers, and shirts.   2012 (Base Year) 2018 2019 Product Quantity (Units) Price Per Unit Quantity (Units) Price Per Unit Quantity (Units) Price Per Unit Shoes 90 $50.00 100 $60.00 100 $65.00 Hamburgers 75 2.00 100 2.00 120 2.25 Shirts 50 30.00 50 25.00 65 25.00 Use the information in the table above to calculate nominal GDP in 2012, 2018 and 2019. Use the information in the table above to...
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...
Which of the following describe the consumer price index (CPI)? It: compares the cost of the...
Which of the following describe the consumer price index (CPI)? It: compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2. compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. measures the increase in the prices of the goods included in GDP. is the ratio of the...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How many months has the U.S. economy been in this stage of the business cycle? ___________ months 2. How long has the current expansion/recovery lasted to date? _________________ How does this compare to the average length of U.S. recessions since 1854? ______________________________. 3. What do the last four recoveries/expansions (that is, the current recovery/expansion and the previous three recovery/expansions), suggest about a new trend in...
MATHEMATICS 1. The measure of location which is the most likely to be influenced by extreme...
MATHEMATICS 1. The measure of location which is the most likely to be influenced by extreme values in the data set is the a. range b. median c. mode d. mean 2. If two events are independent, then a. they must be mutually exclusive b. the sum of their probabilities must be equal to one c. their intersection must be zero d. None of these alternatives is correct. any value between 0 to 1 3. Two events, A and B,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT