The Cost Price index of an economy in 2019 is 100, if the Cost Price index of an economy in 2020 is 119  and CPI for 2021 is 128.7. What is the rate of inflation for the year of 2021?   Select one: a. 10.15 b. None of these c. 10.96 d. 11.91 e. 211.91

Q: 132.) You decide to lend your sister, who has never defaulted on a loan (ie. ρd =0), $1000 for one…

A: Real interest rate can be calculated by using the following formula.

Q: Inflation Rate Comparisc 5,1 2,5 1,9 Jan 2019 Jul 2019 1,9 2,5 5,1 2,5

A: Inflation rate if kept at certain level can boost the economic activity and give rise to economic…

Q: 4. Real versus nominal values and correcting for inflation Consider the following hypothetical…

A: Nominal GDP is the measure of the value of the goods and services produced in an economy at the…

Q: Inflation is a general increase in prices and may be measured by the Consumer Price Index (CPI). Use…

A: As per guidelines, we will answer the first question. If you want any specific question to be…

Q: (a) The Consumer Price Index (CPI) in December 1980 was 86.3. The Consumer Price Index as of…

A: a. If minimum wage in 1980 was w1980, minimum wage in 2021 will be w2021=w1980*278.886.3≈3.23w1980…

Q: In 2015, average hourly earnings were $15.35. By 2019, the had risen to $19.33. In the same period…

A: Answer: Given, Year Average hourly wage CPI 2015 $15.35 185.5 2019 $19.33 245.9 Real wage…

Q: 7. Interest, inflation, and purchasing power Suppose Susan is an avid reader and buys only comic…

A: The interest rate which is being adjusted for inflation is known as the real interest rate. It…

Q: 5. Interest, inflation, and purchasing power Suppose Kate is a cinephile and buys only movie…

A: Initially, The purchasing power of kate 1000 $ deposit is 100 Movie tickets(1000/10)   When…

Q: What are the 6 factors the affecting the inflation rate of the country ? With example

A: Inflation is defined as the macroeconomic time period in which price of the services and goods rises…

Q: Consider an economy producing only three commodities: jeans, haircuts, and textbooks. The quantities…

A: 2018 is the base year The price index of 2019 = Basket value in 2019 X 100/ Basket value in 2018

Q: The following information relating to a basket of goods and services to the economy of a some…

A: Consumer Price Index  is a measure used for estimating the price change in the basket of goods and…

Q: .        If actual inflation is more than expected inflation, which of the following groups will…

A: Inflation is the decline of purchasing power of a given currency over time.  The Consumer Price…

Q: What is the inflation rate in 2019? Has it increased or decreased since 2018 and by how much?  If…

A: Inflation rate in 2019 = Percentage increase in GDP Deflator from 2018 to 2019. Inflation rate in…

Q: Inflation and interest rates a) Define/explain the consumer price index. b) Suppose that the nominal…

A: Note: Since, you've posted question with multiple sub-parts, we will solve the first the first three…

Q: If the nominal GDP is $20 trillion, what is the real GDP if the inflation is 3%

A: Real GDP is also called inflation adjusted GDP.

Q: If the price of a good is $200 in 2015 and $204 in 2019, what is the inflation rate? A) 22% B) 20%…

A: Inflation refers to the situation of increasing price level in the economy.

Q: Suppose the CPI was 110 last year and is 121 this year.  Instructions: In part a enter your answer…

A: Inflation: It refers to the rise in the general price level over a period of time.Deflation: It…

Q: The table shows consumer price index data for the United Kingdom. Based on this information, what is…

A:

Q: ssume that Gabriel earned a nominal wage rate of $15 per hour in 2019, the base year for the CPI.…

A: Real wage rate = Nominal wage rate x (Current year CPI / Base year CPI) In base year, CPI is always…

Q: Percentage Changes in Nominal Income and Prices Annual Annual Inflation Rate Nominal Wage Growth…

A: The measure that depicts payment being made to an employee by the employer for working for a…

Q: Macroeconomic information for an economy is given below. (a) How much productive did labor become…

A: Answer  to the question is as follows:

Q: Assume that there are only 3 goods produced in the economy. As seen in the table above, price(P) and…

A: Nominal GDP (NGDP) = ∑(current year price x current year output)Real GDP (RGDP) = ∑(base year (2016)…

Q: What is the rate of Inflation in 2016 if the consumer Price Index (CPI) at the end of 2015 was 175…

A: CPI is measured using fixed basket of goods.

Q: Interpreting Graphs: Comparison of Inflation Rates/Continuing rise of the population 70 2017 60 12…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: 13. Which of these statements regarding Consumer Price Index (CPI) are accurate? Select all that…

A: A: True. CPI can be calculated for one industry by using a representative bundle in that industry…

Q: The table below pertains to Studious, an economy in which the typical consumer’s basket consists of…

A: According to the question given, the market data of the economy which have a typical consumer basket…

Q: Using you answer for Question 2, what will be the price per MMBtu of natural gas on June 30, 2022 if…

A: The price per MMBtu can be calculated by using the following equation. Price per MMBtu= Pi*(1+i)t

Q: If the CPI was 110 last year and is 121 this year, what is this year’s rate of inflation? What is…

A: CPI or the Consumer Price Index refers to the price indices for the basket of commodities used for…

Q: Question 3 Imagine that you are a lender in a loan contract with a nominal interest rate of 14…

A: Question 3 a) Ex ante real interest rate = nominal interest rate - expected inflation = 14% - 5% =…

Q: Which of the following statements is correct? a. The CPI can be used to compare dollar figures…

A: The CPI is an effective tool and is used in the procedure of how it could help compare it with the…

Q: The table below pertains to Iowan, an economy in which the typical consumer's basket consists of 4…

A: The consumer price index measures the overall cost of the goods and services bought by a typical…

Q: Which country has the highest inflation rate in 2007-8, as shown in the CPI table below? Year…

A: The inflation rate is a measure of the rate of growth in the overall price of chosen products and…

Q: QUESTION 21 Labor Data for Uruguay Year 2017 2018 2019 Adult population 6,000 9,000 9,600 Number of…

A: CPI is measured using fixed basket of goods.

Q: - The table below pertains to Greenland, an economy in which the typical consumer's basket consists…

A: Cost of basket means the value of all the goods that are included in the basket, in a given time…

Q: Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been…

A: "CPI in economics measure changes in the price levels over time that a reference population uses and…

Q: Year Price of Pizza Price of Beer 2010 $10 $15 2011 $12 $16 2012 $14 $17 Table 2.…

A: 100*10=1000 300*15=4500 1000+4500=5500 100*12=1200 300*16=4800 1200+4800=6000 6000-5500/5500*100=9

Q: The CPI for "All Items" was 249.554 in March 2018, and 254.202 in March 2019. Over this period, the…

A: Since you have asked multiple question, we will solve the first question for you. If youwant any…

Q: 10. Calculating the inflation rate The following table provides the Consumer Price Index (CPI) and…

A: The inflation rate can be calculated from the Consumer Price Index (CPI), by Inflation rate =…

Q: Suppose that in March 2012, Japan's CPI was equal to 1150 and the CPI in the US was also equal to…

A: CPI is a gauge of how prices paid by urban consumers for a market basket of goods and services have…

Q: Imagine that the interest rate on your savings account is 1.5% APR and inflation is 2% per year.…

A: Inflation basically refers to the rise in the average price level of goods and services in an…