1) CPI = Wage (today)/ Wage (base year) x 100 = 7/5.5 x 100 = 127.27
2) Original salary (base year) = 27 x 100/160 = $16.88
3) Nominal rate of return = Real rate of return + inflation rate
inflation rate = 4.9% - 3.7% = 1.2%
4) Nominal rate of return (interest rate) = 4.9% + 2.5% = 7.4%
Answer the following questions based on the relationship between real and nominal variables. Round answers to...
Answer the questions based on the relationship between real and nominal variables. Round answers to two decimal places as needed. When Joe started his job at the laundromat five years ago, his wage was $6.00$6.00 an hour. Today, his wage is $7.00$7.00 an hour. If Joe started his job in the base year, and his real wage is the same as when he started, what is the Consumer Price Index (CPI) today? current CPI: The International Disc Jockey's Union has...
What is the answer to part C?
Note: The answer is not 0.6
Answer the questions based on the relationship between real and nominal variables. Round answers to two decimal places as needed. When Joe started his job at the laundromat five years ago, his wage was $4.50 an hour. Today, his wage is $8.00 an hour. If Joe started his job in the base year, and his real wage is the same as when he started, what is the...
Complete the questions below that are based on your chapter readings. Submit your answers in a Microsoft Word document (no PDFs) by 11:00 p.m. on Sunday of Unit 2 or as directed by your professor. 1. Suppose you are given the following data for a small economy: Number of unemployed workers: 1,000,000. Labor force: 10,000,000. Based on this data, answer the following: What is the unemployment rate? Can you determine whether the economy is operating at its full employment level?...
SECTION A (50) Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia – a small, young country on the east coast of the Baltic Sea – has recently earned the title of a ‘‘tiger’’. After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a planned to a market economy. The first decade proved...
Read the Article posted below, then answer the following
questions:
1. As a junior member of your company’s committee to
explore new markets, you have received a memo from the chairperson
telling you to be prepared at the next meeting to discuss key
questions that need to be addressed if the company decides to look
further into the possibility of marketing to the BOP segment. The
ultimate goal of this meeting will be to establish a set of general
guidelines...
Q1 Which of the following are included and which are excluded in calculating this year's GDP. Explain in each instance. a. A monthly scholarship cheque received by an economics student b. The purchase of an almost new tractor by farmer Kojo C. The cashing in of a savings bond d. An increase in business inventories e. Tim Horton's purchases a corner grocery store f. Fearless Qweenie Kong, a stuntwoman, purchases a life insurance policy for a billion dollars ($) g....
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...
Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first summer job. Even though his parents are claiming him as a dependent he wants to file a return in order to get his refund. He receives his W-2 and decides he can do his own return using form 1040-EZ. Which of the following information is not found on a Form W-2? a) The taxpayer’s Social Security number b) The taxpayer’s wages, tips and other...