Macroeconomics Assignment #3

Problem Set 2: Consumer Price Index   Suppose that people consume only three goods, as shown in this table:     Tennis Balls Golf Balls Bottles of Pepsi Cola 2017 price € 3 € 5 € 1 2017 quantity 100 100 200 2018 price € 3 € 6 € 2 2018 quantity 100 100 200   What is the percentage change in the price of each of the three goods? Using a method similar to the CPI, compute the percentage change in the overall price If you were to learn that a bottle of Pepsi Cola increased in size from 2017 to 2018, should that information affect your calculation of the inflation rate? If so, how?

Problem Set 2: Consumer Price Index   Suppose that people consume only three goods, as shown in this table:     Tennis Balls Golf Balls Bottles of Pepsi Cola 2017 price € 3 € 5 € 1 2017 quantity 100 100 200 2018 price € 3 € 6 € 2 2018 quantity 100 100 200   What is the percentage change in the price of each of the three goods? Using a method similar to the CPI, compute the percentage change in the overall price If you were to learn that a bottle of Pepsi Cola increased in size from 2017 to 2018, should that information affect your calculation of the inflation rate? If so, how? If you were to learn that Pepsi Cola introduced new flavors in 2018, should that information affect your calculation of the inflation rate? If so, how?

Which of the following is a macroeconomic statement? 1) The price of farmland in the U.S. increased by 30 percent in 2011 to 2012. 2) The gross domestic product in the first quarter of 2014 decreased from the previous quarter. 3) General Motors' profits increased last year. 4) The productivity of steelworkers increased by 1 percent last year.

In Felixania, cat food constitutes 45 percent of the typical basket of goods for a typical consumer, dog food constitutes 3 percent, and all other goods constitute the remaining 52 percent. Assume the price of cat food rises by 4 percent, the price of dog food falls by 10 percent, and prices remain constant for all other goods. Based on the information given, we can definitely say CORRECT ANSWER: the consumer price index (CPI) in Felixania is more than in the previous year. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Consider the following data on Prices and Quantities of orangesand VCRs. Calculate the total value of goods and services at constant prices in thiseconomy in 1998d. Calculate the total value of goods and services at constant prices in thiseconomy in 1999  using the image

Macroeconomics question a,b and c

Suppose that a typical consumer buys the following quantities of three commodities in 1993 and 1994. 1994 per Unit Price Commodity Quantity 5 units 2 units 3 units 1993 per Unit Price Food $ 6.00 $5.00 Clothing $7.00 $9.00 Shelter $12.00 $19.00 Which of the following can be concluded about the consumer price index (CPI) for this individual from 1993 to 1994? It remained unchanged. It decreased by 25%. It decreased by 20%... It increased by 20%. It increased by 25%. S

Graph and label as either direct or indirect the relationships you would expect to find between (a) the number of inches of rainfal per month and the sale of umbrellas, (b) the amount of tuition and the level of enrollment at a university, and (c) the popularity of an entertainer and the price of her concert tickets.

Can you please answer the last three questions. Thank you.

Answer d,e,f and g Many elderly people in the US receive Social Security payments as their sole source of income. Because of this, there have been attempts to adjust these payments so as to keep up with changing prices (inflation). This process is called “indexing”; this question will lead you through the process. Suppose that in the year 2018, a typical Social Security recipient consumed only Food (F) and Housing (H). The price of housing was $150/unit and the price of food was $50/unit. Denote the quantities of food and housing per month by F and H respectively. This consumer received $1500/month and consumed 5 units of housing and 15 units of food. (a)  Write out the consumer’s budget constraint and demonstrate that the bundle chosen falls on that budget constraint. (b)  Draw the budget constraint on a graph (Housing on the horizontal axis) with the optimal bundle labeled. Draw the indifference curve through that optimal bundle. Assume preferences are well behaved. Suppose that in…

Q19 Suppose a consumer can purchase only two goods: pasta and rice. Let the quantity of pasta be measured on the vertical axis and the quantity of rice be measured on the horizontal axis. If the price of pasta falls, with no change in the price of rice or in the consumer's money income, then the budget line for the consumer will rotate... a. Outward parallel to the existing budget line. b. Toward the origin and become flatter. c. Away from the origin and become steeper. d. Away from the origin and become flatter. e. Toward the origin and become steeper.

Randolph is taking three courses this semester: economics, statistics, and finance. He has decided to spend 20 hours per week studying (in addition to attending all his classes) and his objective is to maximize his average grade, which means maximizing the total of his grades in the three courses. The table shows Randolph's estimate of the relation between time spend studying and his grade for each course. Hours of study 4 5 6 7 8 9 10 Grade in: Economics Statistics 63 54 64 72 79 Multiple Choice 85 88 90 92 72 78 83 87 89 Finance 68 76 82 87 90 93 95 Based on the information in the table, how should Randolph allocate his time? 7 hours economics, 7 hours statistics, 6 hours finance 6 hours economics, 6 hours statistics, 8 hours finance

Suppose a typical American consumer purchases three goods, creatively named good A, good B, and good C. The prices of these goods are listed in the table below. Price in 2017 ($) Good A B C 11.11% 5 Price in 2018 ($) 14 Instructions: Round your answers to two decimal places. a. If the typical consumer purchases two units of each good, the percentage increase in the price paid by the consumer for this basket between 2017 and 2018 is: 5.88% 2 b. If the typical consumer purchases 10 units of good B and 2 units of both good A and good C, the percentage increase in the price paid by the consumer for this basket is: c. The percentage price change is: O influenced more by the quantities of the goods in the basket. O influenced more by the relative change in prices of the goods in the basket. Ⓒalways positive. O determined by the relative quantities of the goods and the relative price change for those goods.

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Suppose housing constitutes 45% of the typical basket of goods for a typical consumer, education constitutes 3%, and all other goods make up the remaining 52%. Assume the price of housing rises by 4%, the price of education falls by 10%, and prices remain constant for all other goods. Based on the information given, we can definitely say Select one: a.because the price of education fell by more than the price of housing rose, the consumer price index (CPI) must have decreased. b.the CPI is higher than in the previous year. c.if consumers get a 4% pay raise, they are worse off in terms of their real income compared to inflation as measured the CPI. d.because housing is a luxury (as is education), consumers are certainly no worse off in terms of their real wages as measured by the CPI. e.the CPI is unchanged from the previous year.

Suppose the following transactions occur during the current year: 1. Kevin orders 50 cases of mezcal from a Mexican distributor at a price of $90 per case. 2. A U.S. company sells 300 spark plugs to a Korean company at $5.00 per spark plug. 3. Rajiv, a U.S. citizen, pays $900 for a TV he orders from Cosmart (a U.S. company).   Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year. Hint: Be sure to enter a “0” if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative.   Amount (Dollars) Consumption   Investment   Government Purchases   Imports   Exports   Net Exports   Gross Domestic Product (GDP)

Solve it correctly please.

Suppose that a hypothetical “consumer market basket” consists only of Goods B and C, in the quantity:  B = 10 and C = 6.  As in question #1, use 2021 as a base year (i.e., 2021 = 100).                                                                          Year 2020      Year 2021     Year 2022    Quantity of Good A                                          10                   12                   14  Price of Good A                                           $0.50              $1.00             $1.50    Quantity of Good B                                            3                     6                     9  Price of Good B                                           $1.00              $2.00             $3.00    Quantity of Good C                                         20                    20                  20  Price of Good C                                           $0.25              $0.25             $0.25        If an individual’s nominal income rises 50%, what is the…

Part II: Crude oil prices quadrupled from less than $30 per barrel in 2019 to over $120 per barrel in early 2022. During this period, prices of non-oil products increased relatively less than crude oil prices (2.3% in 2019, 1.4% in 2020, and 7.0% in 2021). For the purpose of our exercise, let’s keep prices of non-oil products unchanged. Use a graph to show the income effect and substitution effect of the increase in oil prices during this period. (You should use oil on the x-axis and non-oil products on the y- axis).

Roberto is a senior citizen who consumes food and health care. When he retired in​ 2002, he consumed 90 meals and 3 medical checkups per month. Suppose in 2002 that the price of a meal was ​$10 and the price of a medical checkup was ​$64. ​However, in​ 2012, the price of a meal is ​$11 and the price of a medical checkup is ​$278. As a​ result, Roberto consumes 100 meals and 2 medical checkups per month. Calculate a Laspeyres​ cost-of-living index for Roberto using 100 as the base in 2002. In​ particular, the Laspeyres index for 2012 is nothing. ​(Enter your response rounded to two decimal places.​)

How would you interpret (1) an upward sloping curve and (2) a downward slope curve in a two variable diagram?

please see the attachment.

The following questions highlight how changes in numbers can be measured in both absolute and relative, or percentage, terms. Two stores in a mall are having promotions. The first, Annie's Attic, is offering $10.00 off any purchase. The other, Betty's Breakables, is offering 40% off any purchase. Each store offers a music box at a (non-discounted) price of $60 and a faux Ming vase for $30.00, as summarized in the following table. Determine the promotional price of each item at each store. Original Price (Dollars) Item A music box A faux Ming vase $60 $30.00 $ $ O $10.00 Off (Dollars) O Discount What advice should you give your friend in this situation? Suppose a friend of yours wants to buy a crystal candlestick. You remember seeing this item at both Annie's Attic and Betty's Breakables, but you do not remember the price. $ $ 40% Off (Dollars) O Go to Betty's Breakables, if the price is below $25.00. O Go to Betty's Breakables, 40% off is always better than $10.00 off. Go to Betty's…

13. Suppose that AS = 3SAT + 2SAX and that today's price is S(0) = 50. Find (i.e., derive) the PDF for the price of S(1), the price one year from now.

Which of the following is a macroeconomic issue? The price of butterThe number of new cars producedThe growth rate of total outputThe price of products sold in the steel industryThe price of cell phone service Question 8.8.When economists make the assumption that wants are unlimited, they mean that most people  want more of everything.are satisfied with what they have.want more of some goods, even if they don’t want more of everything.don’t care what they have.are greedy. Question 9.9.What will cause a change along the supply curve?  The supplier’s expectationsThe supplier’s costsThe price of the goodThe price of all other good? Question 10.10.Ceteris paribus, as applied in demand theory, means accounting for all possible simultaneous changes.holding constant all factors that affect demand except one.observing the real world.holding technology and resource prices constant.holding one input constant while changing the other input.

Table 24-3 The table below lists the per pound prices of meat and potatoes for the months of January, February, and March. Assume that the typical consumer buys 25 pounds of meat and 15 pounds of potatoes each month, and that January is the base period. 10. Refer to Table 24-3. Calculate the cost of a basket of goods for each month. 11. Refer to Table 24-3. Calculate the consumer price index for February and March. 12. Refer to Table 24-3. Calculate the inflation rate for February.

Problem 5 starts on 1 page and goes to 2nd. Thank you

The following questions highlight how changes in numbers can be measured in both absolute and relative, or percentage, terms. Two stores in a mall are having promotions. The first, Annie's Attic, is offering $15.00 off any purchase. The other, Betty's Breakables, is offering 40% off any purchase.   Each store offers a music box at a (non-discounted) price of $90 and a faux Ming vase for $75.00, as summarized in the following table.