Homework Answers
The real value of income receives is given as the nominal value accounted for inflation. The formula to apply is
In this case, the base year is 2006. because the CPI for the base year is 100. If the nominal value is converted to real value, the real values will be in constant base-year 2006 prices. The table below calculates the real value for each year. note that the nominal and real value is equal for the base year.
Table 1
| Year | CPI | Nominal Value | Real Value |
| 2006 | 100 | 5000 | 5000 |
| 2007 | 108 | 5000 | 4629.63 |
| 2008 | 118 | 5000 | 4237.29 |
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3. The following table shows the CPI in Country C. Year 2006 2007 2008 СРІ 100...
a $900 ECON 250 40. In a certain economy in 2008, GDP amounted to $5,000, consumption...
a $900 ECON 250 40. In a certain economy in 2008, GDP amounted to $5,000, consumption amounted to $3.000, govem punch investment and the value of exports exceeded the value of imports by $200. It follows that investment a n d to b. SI,100 c. $1,250 d. $1,325 41. Which of the following statements about GDP is correct? a. Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the...
Suppose a typical family in Bananaland consumes only three goods: bananas, sunscreen and gasoline. Each year...
Suppose a typical family in Bananaland consumes only three goods: bananas, sunscreen and gasoline. Each year the typical familypurchases 100 kilos of bananas, 50 bottles of sunscreen and 150 litres of gasoline. The following table shows the prices of bananas, sunscreen and gasoline for 3 years. 2006 2007 2008 Bananas (price per kilo) $1.80 Sunscreen (price per bottle) $2.00 Gasoline (price per litre) $0.80 Rounded to one decimal point, the CPI for 2008 is $2.00 $2.10 $1.00 $2.20 $2.15 $0.90...
The table below shows the GDP deflator and the CPI over the past five years. By...
The table below shows the GDP deflator and the CPI over the past five years. By what percentage did prices change between years for each measure? nstructions: Enter your answers as percentages rounded to one decimal place. Change in GDP Change in CP Year 2005 2006 2007 2008 2009 2005-2009 GDP deflator 100 105 112 123 127 100 104 110 113 120
Can you solve both Table 20-10 Nominal Average Hourly Earnings $10 CPI (1982-1984 -100) Year 2007...
Can you solve both
Table 20-10 Nominal Average Hourly Earnings $10 CPI (1982-1984 -100) Year 2007 2008 2009 105 110 58) Refer to Table 20-10. Looking at the table above, what is the approximate rate of growth of real 58) average hourly earnings from 2007 to 2008? A) 1596 B) 4.4% C)-1.5% D)-4.8% 59) Refer to Table 20-10. Looking at the table above, what is the rate of growth of the average price 59) level from 2008 to 2009? A)...
In Country A, there are only 3 goods: milk, butter and cheese. The following table shows...
In Country A, there are only 3 goods: milk, butter and cheese. The following table shows the prices and quantities produced of the year 201o 2011, and 2012 2011 201 uantity Price 000 3 500 200 Price antity Price 000 4 400 1500 1000 300 600 Butter 4 Cheese 10 15 Table-11 3. Table-11: Suppose that the basket for a typical consumer is 10 units of milk, 3 units of butter and 6 units of cheese. What is the consumer...
Use the following table to answer the next question. The base year is 2007 3 Hot...
Use the following table to answer the next question. The base year is 2007 3 Hot Dogs Year Price Quantity 2005 $2.50 100 2006 4.00 100 2007 5.00 100 2008 8.00 150 2009 110.00 200 — Baseballs Bottles of Beer Price Quantity Price Quantity $2.50 50 $1.00 100 5. 00 100 2.00 150 5.00 100 2.00 200 8.00 200 г 4.00 — 200 10.00 1200 14.00 250 Compared to the base year, the rate of inflation for the year 2007...
e Question Completion Status: The following table shows the GDP per capita of country X for...
e Question Completion Status: The following table shows the GDP per capita of country X for three years GDP per capita 1,500 1,745 2,050 1) Refer to the table above. At what rate did the country grow between 2005 and 2006? 12.49% B) 15.95% C) 16.33% | D) 18% Answer 2) Refer to the table above. At what rate did the country grow between 2006 and 2007? A) 13.63% B) 15.55% C) 17.47% | D) 19.24% Answer 3) Refer to...
Use the following table to answer questions 7 through 12 The table shows the peices and...
Use the following table to answer questions 7 through 12 The table shows the peices and the quantities consumed in Carnivore Country Suppose the base year is 2008 Also, suppose that 2008 is the year the typical consumption busket as determined, so the quantities consuomedin 2008 are the only quaretities needed to celculate the CP! in eck year Year Price of Beel Quseity of Beet Price of Pork Quantity of Park 2008 2009 2010 2.00 2.50 2.75 100 90 105...
3. GDP trend and cycle: See Table 2 which shows UK real GDP per capita. Suppose...
3. GDP trend and cycle: See Table 2 which shows UK real GDP per capita. Suppose that the economy was at its trend in 2003. Suppose also that trend growth is one percent per year. Calculate the cycle using the formula Cycle = log (GDP)-log (Trend) In which years was the economy below trend? In which years was the economy above trend? What units is the cycle measured in? What year was the economy furthest above trend? In what year...
1. Economic fluctuations and growth Real GDP (Billions of dollars) 376 380 388 408 404 Year 2000 2001 2004 2005 2006 2007 2008 400 412 The grey line on the following graph shows the economy...
1. Economic fluctuations and growth Real GDP (Billions of dollars) 376 380 388 408 404 Year 2000 2001 2004 2005 2006 2007 2008 400 412 The grey line on the following graph shows the economy's long-term growth trend Use the blue points (circle symbol) to plot the real GDP in each of the years listed. Be sure to plot from ieft to right. Line segments will automatically connect the points. Next, place the green triangle on the graph to indicate...
a $900 ECON 250 40. In a certain economy in 2008, GDP amounted to $5,000, consumption amounted to $3.000, govem punch investment and the value of exports exceeded the value of imports by $200. It follows that investment a n d to b. SI,100 c. $1,250 d. $1,325 41. Which of the following statements about GDP is correct? a. Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the...
Suppose a typical family in Bananaland consumes only three goods: bananas, sunscreen and gasoline. Each year the typical familypurchases 100 kilos of bananas, 50 bottles of sunscreen and 150 litres of gasoline. The following table shows the prices of bananas, sunscreen and gasoline for 3 years. 2006 2007 2008 Bananas (price per kilo) $1.80 Sunscreen (price per bottle) $2.00 Gasoline (price per litre) $0.80 Rounded to one decimal point, the CPI for 2008 is $2.00 $2.10 $1.00 $2.20 $2.15 $0.90...
The table below shows the GDP deflator and the CPI over the past five years. By what percentage did prices change between years for each measure? nstructions: Enter your answers as percentages rounded to one decimal place. Change in GDP Change in CP Year 2005 2006 2007 2008 2009 2005-2009 GDP deflator 100 105 112 123 127 100 104 110 113 120
Can you solve both
Table 20-10 Nominal Average Hourly Earnings $10 CPI (1982-1984 -100) Year 2007 2008 2009 105 110 58) Refer to Table 20-10. Looking at the table above, what is the approximate rate of growth of real 58) average hourly earnings from 2007 to 2008? A) 1596 B) 4.4% C)-1.5% D)-4.8% 59) Refer to Table 20-10. Looking at the table above, what is the rate of growth of the average price 59) level from 2008 to 2009? A)...
In Country A, there are only 3 goods: milk, butter and cheese. The following table shows the prices and quantities produced of the year 201o 2011, and 2012 2011 201 uantity Price 000 3 500 200 Price antity Price 000 4 400 1500 1000 300 600 Butter 4 Cheese 10 15 Table-11 3. Table-11: Suppose that the basket for a typical consumer is 10 units of milk, 3 units of butter and 6 units of cheese. What is the consumer...
Use the following table to answer the next question. The base year is 2007 3 Hot Dogs Year Price Quantity 2005 $2.50 100 2006 4.00 100 2007 5.00 100 2008 8.00 150 2009 110.00 200 — Baseballs Bottles of Beer Price Quantity Price Quantity $2.50 50 $1.00 100 5. 00 100 2.00 150 5.00 100 2.00 200 8.00 200 г 4.00 — 200 10.00 1200 14.00 250 Compared to the base year, the rate of inflation for the year 2007...
e Question Completion Status: The following table shows the GDP per capita of country X for three years GDP per capita 1,500 1,745 2,050 1) Refer to the table above. At what rate did the country grow between 2005 and 2006? 12.49% B) 15.95% C) 16.33% | D) 18% Answer 2) Refer to the table above. At what rate did the country grow between 2006 and 2007? A) 13.63% B) 15.55% C) 17.47% | D) 19.24% Answer 3) Refer to...
Use the following table to answer questions 7 through 12 The table shows the peices and the quantities consumed in Carnivore Country Suppose the base year is 2008 Also, suppose that 2008 is the year the typical consumption busket as determined, so the quantities consuomedin 2008 are the only quaretities needed to celculate the CP! in eck year Year Price of Beel Quseity of Beet Price of Pork Quantity of Park 2008 2009 2010 2.00 2.50 2.75 100 90 105...
3. GDP trend and cycle: See Table 2 which shows UK real GDP per capita. Suppose that the economy was at its trend in 2003. Suppose also that trend growth is one percent per year. Calculate the cycle using the formula Cycle = log (GDP)-log (Trend) In which years was the economy below trend? In which years was the economy above trend? What units is the cycle measured in? What year was the economy furthest above trend? In what year...
1. Economic fluctuations and growth Real GDP (Billions of dollars) 376 380 388 408 404 Year 2000 2001 2004 2005 2006 2007 2008 400 412 The grey line on the following graph shows the economy's long-term growth trend Use the blue points (circle symbol) to plot the real GDP in each of the years listed. Be sure to plot from ieft to right. Line segments will automatically connect the points. Next, place the green triangle on the graph to indicate...
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