umbers and Graphs: Macroeconomic Measurements, Part I: Prices and Unemployment (Ch 06)1969 36.7 1997 160.51970 38.8 1998 163.01971 40.5 1999 166.61972 41.8 2000 172.21973 44.4 2001 177.11974 49.3 2002 179.91975 53.8 2003 184.01976 56.9 2004 188.91977 60.6 2005 195.31978 65.2 2006 201.61979 72.6 2007 207.3421980 82.4 2008 215.3031981 90.9 2009 214.5371982 96.5 2010 218.0561983 99.6 2011 224.9391984 103.9 2012 229.5941985 107.6 2013 232.9571986 109.6 2014 236.7372015 237.0171987 113.62016241.353Source: The Date Were Reported at the Website of the US Bureau of Labor Statistics: Http://www.bls.gow/home.htm Beginning in 2007, the Bureau of LaborStatistics Bagan Reporting the CPI to Three Decimal Paints..Jim earned an annual salary of $30,000 in 1980.Using the table, what is Jim's salary equivalent to in 2016 dollars?$2,472,000$7,240,590$10,242$87,871.24 Numbers and Graphs: Macroeconomic Measurements, Part I: Prices and Unemployment (Ch 06)The following table shows CPI in the period from 1960 to 2016. (Note: This is Exhibit 2 in your textbook.)Use this table to answer the question that follows.Year CPI Year CPI1960 29.6 1988 118.31961 29.9 1989 124.01962 30.2 1990 130.71963 30.6 1991 136.21964 31.0 1992 140.31965 31.5 1993 144.51966 32.4 1994 148.2196733.4 1995 152.4156.91968 34.8 19961969 36.7 1997160.51970 38.8 1998 163.01971 40.5 1999 166.61972 41.8 2000 172.21973 44.4 2001 177.11974 49.3 2002179.91975 53.8 2003 184.01976 56.9 2004188.91977 60.6 2005 195.31978 65.2 2006 201.61979 72.6 2007 207.3421980 82.4 2008 215.3031981 90.9 2009 214.5371982 96.5 2010 218.0561983 99.6 2011 224.9391984 103.9 2012 229.5941985 107.6 2013 232.9571986 109.6 2014 236.7371987 113.6 2015 237,0172016 944909

Consumer Price Index:CPI means the price change based on a basket of goods and services. CPI is a…

1971 40.5 1999 166.6 1972 41.8 2000 172.2 1973 44.4 2001 177.1 1974 49.3 2002 179.9 1975 53.8 2003 184.0 1976 56.9 2004 188.9 1977 60.6 2005 195.3 1978 65.2 2006 201.6 1979 72.6 2007 207.342 1980 82.4 2008 215.303 1981 90.9 2009 214.537 1982 96.5 2010 218.056 1983 99.6 2011 224.939 1984 103.9 2012 229.594 232.957 1985 107.6 2013 1986 109.6 2014 236.737 1987 113.6 2015 237.017 2016 241.353 Source: The Data Were Reported at the website of the US Bureau of Labor Statistics Statistics Began Reporting the CPI to Three Decimal Paints Jim earned an annual salary of $30,000 in 1980. Using the table, what is Jim's salary equivalent to in 2016 dollars? $2,472,000 $7,240,590 $10,242 $87,871.24 2007, the Bureau of Labor

1971 40.5 1999 166.6 1972 41.8 2000 172.2 1973 44.4 2001 177.1 1974 49.3 2002 179.9 1975 53.8 2003 184.0 1976 56.9 2004 188.9 1977 60.6 2005 195.3 1978 65.2 2006 201.6 1979 72.6 2007 207.342 1980 82.4 2008 215.303 1981 90.9 2009 214.537 1982 96.5 2010 218.056 1983 99.6 2011 224.939 1984 103.9 2012 229.594 232.957 1985 107.6 2013 1986 109.6 2014 236.737 1987 113.6 2015 237.017 2016 241.353 Source: The Data Were Reported at the website of the US Bureau of Labor Statistics Statistics Began Reporting the CPI to Three Decimal Paints Jim earned an annual salary of $30,000 in 1980. Using the table, what is Jim's salary equivalent to in 2016 dollars? $2,472,000 $7,240,590 $10,242 $87,871.24 2007, the Bureau of Labor

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The "pizza connection" refers to the observation that in a major city, the cost of a slice of pizza is always about the same as the subway fare. Using the CPI values from the table shown below and the CPI table, determine what a slice of pizza should have cost in 2009 if it cost $1.00 in 1984 and prices had risen with the CPI. What does this tell you about how actual pizza prices changed compared to the CPI? 1984 1993 1997 2002 Year Pizza Cost 2008 2011 2015 2.50 2.75 2.80 1.00 1.25 1.50 2.00 1.00 1.15 2.00 2.60 2.85 3.05 Subway fare CPI 1.40 144.5 160.5 179.9 215.3 224.9 103.9 237.0 Click to view the CPI Table. A slice of pizza should have cost $ in 2009 if it cost $1.00 in 1984 and prices had risen with the CPI. (Round to the nearest cent as needed.) Data table C Year 1976 56.9 1977 60.6 1978 65.2 1979 72.6 1980 82.4 1981 90.9 1982 96.5 1983 99.6 1984 103.9 1985 107.6 Average Annual Consumer Price Index (1982-1984=100) CPI CPI Year CPI 1996 156.9 Year 1986 109.6 1987 113.6 1988 118.3…
The following are the CPI values in Hong Kong for 2009 to 2014 (recorded in December): Year CPI 2009 100 2010 102.9 2011 108.8 2012 112.9 2013 117.7 2014 123.4 i) Calculate the inflation rate in 2010, 2011, 2012, 2013, and 2014. 11) What is the inflation rate from 2009 to 2014? iii) If you held $1,000,000 in a safety box at home starting in 2009, what would its present value be in 2014?
Year Income CPI 2012 2013 62,464 65,692 226.7 230.3 2014 2015 66,899 70,500 233.9 233.7 2016 72,904 236.9 Answer of the following questions using the data in the table above (Show the analysis): a) Provide the adjusted median incomes (convert to 2016 dollars) b) Calculate the mean of the nominal incomes c) Calculate the mean of the adjusted incomes d) Explain the importance of adjusting values for inflation (2-5 sentences)
The "pizza connection" refers to the observation that in a major city, the cost of a slice of pizza is always about the same as the subway fare. Using the CPI values from the table shown below and the CPI table, determine what a slice of pizza should have cost in 2009 if it cost $1.00 in 1984 and prices had risen with the CPI. What does this tell you about how actual pizza prices changed compared to the CPI? Year 1984 1993 1997 2002 2008 2011 2015 1.00 1.25 1.50 2.00 2.50 2.75 2.80 1.00 1.15 1.40 2.00 2.60 2.85 3.05 103.9 Click to view the CPI Table. Pizza Cost Subway fare CPI 144.5 160.5 179.9 215.3 224.9 237.0 ← A slice of pizza should have cost $ in 2009 if it cost $1.00 in 1984 and prices had risen with the CPI. (Round to the nearest cent as needed.)
Here are some recent data on the US consumer price index: Year CPI Year CPI Year CPI 2016 240.0 2011 224.9 2006 201.6 2015 237.0 2010 218.1 2005 195.3 2014 236.7 2009 214.5 2004 188.9 2013 233.0 2008 215.3 2003 184.0 2012 229.6 2007 207.3 2002 179.9 Compute the inflation rate of each year 2003-2016 and determine which were years of inflation. In which years did deflation occur? In which years did disinflation occur? Was there hyperinflation in any year?
The following table gives the CPI basket for 2000 and 2001. Suppose that 2000 is the reference base period: Item Quantity Price Price (2000) (2000) (2001) Oranges 50 $0.90 $0.75 Bananas 100 $0.50 $0.95 Chicken 200 $2.00 $2.50 Beef 100 $5.00 $4.80 Bread 300 $1.75 $2.00 a. What is the cost of the CPI basket in 2000? b. What is the cost of the CPI basket in 2001? c. What is the CPI for 200O?
Below is a list of annual CPI values for the years 2000-2003. Using these values please calculate the average annual rate of inflation over this period. Table Year CPI 2000 200.2 2001 205.6 2002 208.2 2003 209.1 4.45% 1.46% 2.97%
2018 2019 Item Quantity Price Quantity Price Books 10 €30 8 €50 Pens 20 €1 15 €2 In 2018, consumers in a hypothetical economy consumed only books and pens. The prices and quantities for 2018 and 2019 are listed in the table above. The reference base period is 2018. Calculate the CPI in 2019. Give only a numerical answer. Where needed, use only a point () for decimals (e.g., 3.25, not 3,25) and no thousands separator (e.g., 2000, not 2,000).
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?
Q2. Go to the Statistics Canada website https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501 to view the annual average Consumer Price Index for Canada. Change the Reference period years from 1999 to 2021 and click Apply to see the updated data table. Answer the following questions and provide data and calculations where necessary In which ways might the CPI data on food not accurately reflect what is really happening to prices in this product category?
Refer to the Table Below. What is the CPI in 2019 if the reference base period is 2002? TABLE 1 suppose a simple economy produces three goods only. The price and output data for some selected years are shown below. 實實實菁 Price Price (dollars) 2019 0.60 2.15 2.25 Quantity (number) (number) 2002 300 225 225 Quantity Pop Crackers Cucumbers (dollars) 2002 1.50 2.45 1.15 2019 150 175 275
This table gives the monthly purchases of an average consumer in a small economy. Suppose 1977 is the reference base period unless stated otherwise. Item Quantity (1977) Clementines Burritos Bags of trail mix 90 Price (1977) 30 $0.10 $2.00 10 $1.00 $2.00 Find the total cost of the market basket for 1977 and 1978. Price (1978) What is the CPI in 1977 and 1978? $0.15 $2.25 Use the CPIs calculated in part b to find the inflation rate between 1977 and 1978. Recalculate the CPIs using 1978 as the base year. How does the inflation rate change?