A basket of goods in 2005 costs $625; the same basket of goods cost $800 in 2010.If the base year is 2005, what is the value of this price index in 2005? Question 6Answer a. 78.125 b. 155 c. 128 d. 100
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If the base year is 2005, what is the value of this
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- In 2010 a market basket of goods and services costs $1,000. In 2011 the same market basket of goods and services costs $1,100, and in 2012 it costs $1,200. Using 2010 as the base year, what is the consumer price index in 2012? a)120 b)110 c) 109 d) none of the aboveGiven the data in the above table, what is the price index for 1991, using 1988 as the base year and using the 1988 consumption pattern (market basket)?When calculating price indices like the GDP deflator and the CPI, we multiply the ratio by 100. Why? Neither statement is true. Statement a: We multiply by 100 to put things into percentage terms. Statement b: We multiply by 100 to normalize the base year to 100. Both statements are true.
- If the base year is 1970 and the 2016 price index is 135, purchases of $7,000 of goods in the base year would cost $___ for the same goods in 2016. (Round your response to the nearest whole number.)Suppose the base year bundle of goods X, Y, and Z is: (X^(b), Y^(b), Z^(b))= (5,700,60) and the base year (vector of) prices is: (Px^(b),Py^(b), Pz^(b))=(1000,5,25) The following year the (vector of) prices is: (Px^(b+1), Py^(b+1), Pz^(b+1))= (1010,5.05,27.50) 1) Compute the inflation using a Laspeyres Price Index, like the original form of the Consumer Price Index(CPI). 2) Compute the inflation index an alternative way. Calculate the price increase for each good separatelyand then take a weighted average of these price increases, using as weights the budget shares spent on eachgood in the base year. For example, for good X use weight Sx^(b)= (Px^(b)X^(b))/(Px^(b)X^(b)+ Py^(b)Y^(b)+Pz^(b)Z^(b)) Please show all work very confusedAs a first step in computing the consumer price index (CPI), a survey of consumers is done to determine the “basket of goods” purchased by a typical consumer. Suppose that 2009 is given as the base year and, consistent with the data shown in the table above, it was decided that the basket of goods in this economy should consist of one unit of food and two units of clothing. I. Using 2009 as the base year,what is the CPI in each year: 2009, 2010, and 2011? ii. What is the inflation rate in 2010 and 2011?
- Let's assume that, in the United States, during March 2021, the Consumer Price Index was equal to 249.3, then during the base year, the Consumer Price Index was:21. Given the data in the above table, what is the price index for 2015, using 2012 as the base year and using the 2012 consumption pattern (market basket)? a) 125 b) 153 c) 1.2 d) 164 e) 120Assume that a market basket of goods costs $900 in 2018. That same market basket costs $950 in 2019. In 2020, that same market basket of goods costs $800. If we use 2018 as the base year, what is the price index in 2020? Question 27 options: a) 5.56 b) 106 c) 89 d) 115
