23. Refer to the table below that contains information about the Consumer Price Index in Mythopia,in order to answer the question.YearConsumer Price Index2010100,02011112,12012120,8The unit of currency in Mythopia is the Myth.Between 2010 and 2012, the purchasing power of the consumer's MythA Decreased to 20,8 cents.B.Decreased to 120,8 cents.Decreased to 83 cents.Decreased to 93 cents.24. Suppose the SARB decrease interest rates while oil prices is increasing. What would be the expected effecton real GDP and the price level?Price levelUncertainOptionReal GDP1decreasesIncreaseuncertaindecreasesdecreases4IncreasesdecreasesOption 1Option 2Option 3Option 4B.Activaldo to SetD. 21. To calculate gross national income (GNI) from gross domestic product (GDP).must be added andmust be subtracted from GDP.Primary income payments, primary income receiptsB.Primary income receipts, primary income paymentsC.Subsidies for local production; tariffs on production from the rest of the worldD.Taxes from the rest of the world, subsidies received from the rest of the world22. In a country with a population of 50 million people, there are 20 million children under the age of 15 years,16 million employed, 9 million pensioners, 4 million unemployed and 1 million people who are physicallyunable to work. The unemployment rate in this country equalsA 10%.B 13,3%.C 20%.D 25%.

Consumer price index refers to the index which calculates the prices of goods and services in a…

Refer to the table below that contains information about the Consumer Price Index in Mythopia, in order to answer the question. Year Consumer Price Index 2010 100,0 2011 2012 112,1 120,8 The unit of currency in Mythopia is the Myth. Between 2010 and 2012, the purchasing power of the consumer's Myth A Decreased to 20,8 cents. B Decreased to 120,8 cents. C Decreased to 83 cents. D Decreased to 93 cents.

Refer to the table below that contains information about the Consumer Price Index in Mythopia, in order to answer the question. Year Consumer Price Index 2010 100,0 2011 2012 112,1 120,8 The unit of currency in Mythopia is the Myth. Between 2010 and 2012, the purchasing power of the consumer's Myth A Decreased to 20,8 cents. B Decreased to 120,8 cents. C Decreased to 83 cents. D Decreased to 93 cents.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 4.8P

See similar textbooks

Similar questions

What is indexing?
Why do economists use index numbers to measure the price level rather than dollar value of goods?
The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1=940, year 2=970, year 3=1000, and year 4=1070. Calculate two price indices, one using year 1 as the base year (set equal to 100) and the other using year 4 as the base year (set equal to 100). Then, calculate the inflation rate based on the first price index. If you had used the other price index, would you get a different inflation rate? If you are unsure, do the calculation and find out.
Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the CPI to convert from nominal to real would be more appropriate man using the GDP deflate:
Name several forms of indexing in the private and public sector.
How do you convert a series of nominal economic data over time to real terms?
The Consumer Price Index is subject to the substitution bias and me quality/new goods bias. Are the Producer Price index and the GDP deflator also subject to these biases? Why or why not?
How do economists use a basket of goods and services to measure the price level?
Do you think perfect indexing is possible? Why or why not?