Question

(a) In 1985 the price of a new desk top computer was $1,600. The 1985 CPI...

(a) In 1985 the price of a new desk top computer was $1,600. The 1985 CPI is 107.6. The 2019 CPI is 255.7.

Based on this information and using the Real Value Equation from the Chapter Seven Lectures, determine the real price of that computer in 2019 dollars. Show how you got your answer.

(b) When you say the real value in 2019 dollars is your answer for (a) above, what does that really tell us? Use your answer in (a) above in your answer here.

(c) Calculate the Inflation Rate from 1985 to 2019 to the second decimal point. Show how you got your answer.

(d) In one factual sentence without any opinion, state what your answer in (c) above tells us. Use your answer in (c) above in your answer here.

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
The table below reports a CPI value for five different major cities in August 2019. Use...
The table below reports a CPI value for five different major cities in August 2019. Use this information for question 31 below City CPI (August, 2019) Detroit 219.685 New York 257.069 Seattle 242.787 Los Angeles 239.940 Chicago 225.161 31. Assume during August, 2019, you earned $10,000. Based on the CPI values above, in which city would your August income have the greatest purchasing power? A. Detroit B. New York C. Seattle D. Los Angeles E. Chicago 32. Higher real GDP...
Please show work! CPI Applied Example: Year 1980 2018 Resident Tuition $350 $4,570 Consumer Price Index...
Please show work! CPI Applied Example: Year 1980 2018 Resident Tuition $350 $4,570 Consumer Price Index 92.4 245.300 What is the cumulative inflation rate between 1980 and 2018?    16) ______ A) 165%               B) 392% C) 1,206%            D) none of the above 17) Given: What is the nominal increase in tuition between 1980 and 2018?                17) ______ A) 165%               B) 392% C) none of the above        D) 1,206% 18) Given: What is the real increase in tuition between 1980 and 2018?       ...
Currently the tea market is in equilibrium at price $4.00 per bag of tea and 100,000...
Currently the tea market is in equilibrium at price $4.00 per bag of tea and 100,000 bags of tea. Now, suppose a new method of picking tea leaves reduces the labor cost of picking tea leaves by 30%. This new method will lead to a 20% change in the equilibrium price of tea. The Price Elasticity of Demand (Ed) for Tea has been calculated to be 1.10. The Price Elasticity of Supply (Es) for Tea has been calculated to be...
1) A country with a civilian population of 120,000 (all over age 16) has 100,000 employed...
1) A country with a civilian population of 120,000 (all over age 16) has 100,000 employed and 12,000 unemployed persons. Of the unemployed, 7,000 are frictionally unemployed and another 2,000 are structurally unemployed. On the basis of this data, answer the following questions: (show your work for credit) a. what is the size of the labor force? b. What is the unemployment rate? c. What is the natural rate of unemployment for this country? d. Is this economy in recession...
To study the average price of living spaces in New York City, you collect data on...
To study the average price of living spaces in New York City, you collect data on the monthly rent of 30 houses in the city.  You find a sample average rent cost of $565.63 with a standard deviation of $697.61.  Use this information to construct a 99% confidence interval for the true mean rent cost in this area of New York City.  Show all work.  You do notneed to interpret the interval. (5 points) 11. It’s a fact that not everyone can roll their...
2. The top 10 ranked jobs based on various criterion are listed below. Here we are...
2. The top 10 ranked jobs based on various criterion are listed below. Here we are interested in looking at the stress rating of each job (I picked the right one in terms of stress!...also note how many jobs that are ranked towards the top involve math and statistics!): Job Stress Rating Mathematician 24 University Professor(Tenured) 4 Statistician 54 Actuary 54 Audiologist 1 Dental Hygienist 11 Software Engineer 18 Computer Systems Analyst 58 Occupational Therapist 28 Speech Pathologist 17 a....
1.   There are two major websites that use mathematical models to predict the price of houses...
1.   There are two major websites that use mathematical models to predict the price of houses based on things like # of bedrooms, square feet, location, what similar houses sell for, all kinds of variables. You’re going to select a sample of houses and see which website predicts better. a.   Decide on a location for your sample. Anywhere in the US works. Write the location here. Fresno, CA b.   Go to www.zillow.com and check “Recently Sold.” Randomly select at least...
THIS IS THE GENERAL EQUILIBRIUM PROBLEM THAT I PROMISED. YOU FIRST SOLVE FOR THE INITIAL EQUILIBRIUM...
THIS IS THE GENERAL EQUILIBRIUM PROBLEM THAT I PROMISED. YOU FIRST SOLVE FOR THE INITIAL EQUILIBRIUM AS POINT A. WE CONSIDER TWO DIFFERENT AND SEPARATE SHOCKS (I CALL THEM SCENARIOS). THE FIRST SHOCK IS TO THE IS CURVE, THE SECOND SHOCK IS A ‘LM’ SHOCK. AGAIN, WE CONSIDER THESE SHOCKS SEPARATELY SO THAT AFTER YOU COMPLETE SCENARIO 1 (THE IS SHOCK), WE GO BACK TO THE ORIGINAL CONDITIONS AND CONSIDER THE SECOND SCENARIO WHICH IS THE ‘LM’ SHOCK. Consider the...
MATH125: Unit 1 Individual Project Answer Form Mathematical Modeling and Problem Solving ALL questions below regarding...
MATH125: Unit 1 Individual Project Answer Form Mathematical Modeling and Problem Solving ALL questions below regarding SENDING A PACKAGE and PAINTING A BEDROOM must be answered. Show ALL step-by-step calculations, round all of your final answers correctly, and include the units of measurement. Submit this modified Answer Form in the Unit 1 IP Submissions area. All commonly used formulas for geometric objects are really mathematical models of the characteristics of physical objects. For example, a basketball, because it is a...
Macro Economics – Online Exercise 5 Chapter Five Concepts This exercise is voluntary. Should you reply...
Macro Economics – Online Exercise 5 Chapter Five Concepts This exercise is voluntary. Should you reply to it, you’ll receive feedback. Should you not reply, it will not hurt your grade. It’s recommended, but not mandatory. Remember that explanations require the why &/or how clearly shared. Please, do not submit blanks. Doing so would preclude me from seeing the exact pitfalls preventing you from reaching the correct conclusions. I am here to help you, not judge you. 1. Variable investments,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT