Answer : (a)
(Current cost /base year cost)*100 = 130
4460000/130 = real output
Real output = 34308
Year Nominal Income (dollars) CPI Real Income (dollars) $44,600 130 $48.200 $35,183 $51,000 What is the...
Below is Jimmy’s hourly nominal wage in 2010. Find CPI and Jimmy’s real wage. Year Nominal Wage CPI Real Wage 2010 $30
In 2010, the CPI was 217 and Jim's nominal income was $40,000. In 2011, the CPI was 234 and Jim's nominal income was $42,500. The percentage change in Jim's real income between 2010 and 2011 was approximately: A.)+ 6.25% B.)+ 1.5% C.)- 1.5% D.)+ 5.9%
If the CPI was used to convert nominal capital gains to real capital gains, what effect would you expect on the taxes gathered by the sale of an asset with a long-term capital gain? Hint: Consider an LTCG with a 1-year holding period versus an LTCG with a 10-year holding period where the LTCG tax rate is the same for either.
Convert the receipts for each movie to real dollars for the year 2012 (CPI 229.6). Which movie had the largest REAL box office receipts? Avatar: Box office receipts $760.5M, year released 2009, CPI in year released 214.5 Titanic: $600.8M, 1997, 160.5 Star Wars: $461.0M, 1977, 60.6 Shrek 2: $437.2M, 2004, 188.9 E.T.: $399.9M, 1982, 96.5
An individual earned $60,000 per year in 2010. Consider the following values for the CPI: 2005 122 2010 150 2015 165 The individual's real income in 2010 measured in 2005 dollars is The individual's real income in 2010 measured in 2015 dollars is his nominal income in 2010. his nominal income in 2010. more than: more than less than: more than more than: less than less than: less than
You are given the following information about your nominal
salary and the CPI . (For numerical answers below, circle your
answers or put them in a table.)
Nominal Salary | СРІ 2018 $50,000 100 2019 $51,000 101 2020 $52,000 105 A. Calculate both the inflation rate and growth in nominal salary between 2018-2019 and 2019- 2020. B. For each year, calculate your real salary. What is the growth (percentage change) in your real salary? C. Using the approximation provided in...
9. Core Inflation exeludes: 10. GIVEN: Nominal Income-S 400 Billion, CPI-125 % Wo 11, GIVEN: Real Interest Rate 4 %, Inflation Premium = 5 % Calculate the Nominal Interest Rate a bank should charge a borrower. Show All W 12. Who is hurt by inflation? Identify three parties who are hurt by inflation. 1. 2. 3. 13. Explain the 2 impacts which a nezative real interest rate creates relative to consumer spending. 1) 2)
Year Avg. Nominal Wage CPI 1990 $9.54 100 1996 $11.18 127 A. Assuming 1990 is the base year, what would the index of nominal wages be for 1996? B. Assuming 1990 is the base year, what would the index of real wages be for 1996? C. What was the percentage change in real wages over the period 1990 to 1996?
During a certain year of the nominal interest rate was 8% the real interest rate was 3% and the CPI was 176.7 at the beginning of the year the cpi at the end of the year was
Year Nominal GDP(Billions of current dollars Real GDP(Billions of dollars of 2009) 2013 16,691.50 15,612.20 2014 17,393.10 15,982.30 2015 18,036.60 16,397.20 2016 18,569.10 16,662.10 Compute the rate of growth of the economy (use real GDP), and briefly comment on your results. -Between 2013 and 2014 -Between 2014 and 2015 -Between 2015 and 2016 Which one is more important: Nominal GDP or Real GDP? Explain Why.