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Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows: 20 pizzas, $10 each Rent of apartment, $600 per month Gasoline and car maintenance, $100 per month Phone service (basic service plus 10 long-distance calls), $50 per month In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $640, gasoline and maintenance have risen to $120, and phone service has dropped in price to $40 Instructions: Enter your responses by rounding the CPl to three decimal places and the rate of inflation to one decimal place. a. Find the CPl in the subsequent year and the rate of inflation between the base year and the subsequent year. CPI: Rate of inflation: b. The family's nominal income rose by 5 percent between the base year and the subsequent year. Are they worse off or better off in terms of what their income is able to buy? The family is (Click to select)

Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows: 20 pizzas, $10 each Rent of apartment, $600 per month Gasoline and car maintenance, $100 per month Phone service (basic service plus 10 long-distance calls), $50 per month In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $640, gasoline and maintenance have risen to $120, and phone service has dropped in price to $40 Instructions: Enter your responses by rounding the CPl to three decimal places and the rate of inflation to one decimal place. a. Find the CPl in the subsequent year and the rate of inflation between the base year and the subsequent year. CPI: Rate of inflation: b. The family's nominal income rose by 5 percent between the base year and the subsequent year. Are they worse off or better off in terms of what their income is able to buy? The family is (Click to select)

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Measuring A Nation's Income
Section: Chapter Questions
Problem 12PA
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Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows: 20 pizzas, $10 each Rent of apartment, $600 per month Gasoline and car maintenance, $100 per month Phone service (basic service plus 10 long-distance calls), $50 per month In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $640, gasoline and maintenance have risen to $120, and phone service has dropped in price to $40 Instructions: Enter your responses by rounding the CPl to three decimal places and the rate of inflation to one decimal place. a. Find the CPl in the subsequent year and the rate of inflation between the base year and the subsequent year. CPI: Rate of inflation: b. The family's nominal income rose by 5 percent between the base year and the subsequent year. Are they worse off or better off in terms of what their income is able to buy? The family is (Click to select)
Transcribed Image Text:Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows: 20 pizzas, $10 each Rent of apartment, $600 per month Gasoline and car maintenance, $100 per month Phone service (basic service plus 10 long-distance calls), $50 per month In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $640, gasoline and maintenance have risen to $120, and phone service has dropped in price to $40 Instructions: Enter your responses by rounding the CPl to three decimal places and the rate of inflation to one decimal place. a. Find the CPl in the subsequent year and the rate of inflation between the base year and the subsequent year. CPI: Rate of inflation: b. The family's nominal income rose by 5 percent between the base year and the subsequent year. Are they worse off or better off in terms of what their income is able to buy? The family is (Click to select)
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