The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of $40,000 in 1990, what would be a salary with equivalent purchasing power in 201 Select one: O a. $66,565 O b. $45,977 Oc $87 200 O d. $143 486

The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of $40,000 in 1990, what would be a salary with equivalent purchasing power in 201 Select one: O a. $66,565 O b. $45,977 Oc $87 200 O d. $143 486

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Measuring The Cost Of Living

Section: Chapter Questions

Problem 4QR

See similar textbooks

Related questions

Q: A person paid his workers $5 a day in 1914, when the CPI was 10. Today, with the price index at 177,…

A: CPI is consumer price index. It is the weighted average of the prices of the set of goods and…

Q: In 1973 the annual tuition at the University of Oregon was $541 for an Oregon resident. The CPI in…

A: Expected Tuition in 2021 = 2021 CPI1973 CPI* Tuition in 1973 Expected Tuition in 2021 = 273.644.4*$…

Q: If the CPI has a value of 150 today and the base year is 2000, then it costs Select one: O a. €l…

A: Answer is given below

Q: Assume the CPI was 100.0 in 2002 and 125.2 in 2014. Jan’s wage at ABC Innovation was $60,000 in 2002…

A: Pay adjusted for inflation or wages expressed in terms of the quantity of goods and services that…

Q: What would $15,000 earned in 2017 be equal to in 2021? The CPI is for the two years are 150.3 and…

A: Given, Wage earned in 2017 = $15000 CPI in 2017 = 150.3 CPI in 2021 = 240.5

Q: Suppose that the hourly wages in 1960 and 2002 were respectively 7.21 and 8.65 dollars per hour. If…

A: Hourly wage in 1960 = $7.21 Hourly wage in 2002 = $8.65 CPI 1960 = 100 CPI 2002 = 71

Q: The biases in the CPI are Select one: O a. not important since they are so small. O b. not important…

A: A consumer price index is a price index, the price of a weighted typical market crate of consumer…

Q: table Year Price of Meat Price of Rice 2003 20 OMR 20 OMR 2004 20 OMR 30 OMR Suppose that the basket…

A: Given, Basket of goods consisted of: 3 kilos of Meat 2 Kilos of rice Cost for basket in 2003 = (3*…

Q: Suppose the cost of the basket in Year 3 was $4,000 and the cost of the basket in the base year…

A: The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket…

Q: The reference base period for the CPI is 1982-1984. In January 2018, the CPI was 247.9. What does…

A: CPI is measured using fixed basket of goods.

Q: 2000 2005 2010 2015 2020 95.4 107 116.5 126.6 137 The above table shows a history of the Consumer…

A: Here, the given table shows the CPI in different years according to which price of shoes in 2020 is…

Q: QUESTION 14 By computing CPI we are trying to measure O a. the costs of production for a typical…

A: Inflation is defined as the rise in the average price level of commodities and services in the…

Q: Suppose the cost of the basket in Year 3 was $4,000 and the cost of the basket in the base year…

A: Inflation measures the percentage(%) change in purchasing power(PP) of a particular currency. As the…

Q: The CPI is a O A. measure of inflation O B. measure of the price level of all goods and services…

A: CPI is a measure that examines the average prices of consumer services and goods in a basket-like…

Q: Your mother's annual salary back in 2000, the base year, was 180.000 dirhams. Iit in 2021, her…

A: Given information Annual salary in year 2000=18000-- base year annual salary in year 2021=45000

Q: Nominal Average Heurly Eaming Year CPI 2014 2015 2016 100 10 105 12 110 Refer to Table 20-15.…

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

Q: Suppose a person's nominal income is $74,280 in the current year, and the CPI for the current year…

A: CPI stands for consumer price index. "CPI measures the aggregate price level in the economy."…

Q: Using the CPI below as a measure of purchasing power, calculate the "real" hourly earnings for 2020…

A: The CPI or the consumer price index examines the weighted average of prices of a basket of consumer…

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

A: consumer price index is a index which measure the change in price of basket of goods and services…

Q: If your nominal income is $80,000 and your real income in base year prices is $71,500, what is the…

A: Given data: Nominal income is $80,000. Real income is $71,500

Q: Total Currently employed Not working and Want to work but no population looking for work longer…

A: Employment is a legally binding agreement between two persons, one of whom is the employer and the…

Q: QUESTION 17 In an imaginary economy of Tealand, the CPI in 2015 was 130 and the inflation rate was…

Q: The following table shows some values of the Consumer Price Index and the corresponding inflation…

A: From the given information we have to calculate the Consumer Price Index in the year 2014

Q: Suppose that the hourly wages in 1960 and 2002 were respectively 7.21 and 8.65 dollars per hour. If…

A: Consumer Price Index The Consumer Price Index is an instrument by which we can measure the inflation…

Q: The CPI O A. is a measure of the change in the amount of money that people need to spend to achieve…

Q: The value of the consumer price index (CPI) is best described as the relationship of a) current year…

A: Consumer price index measures the rate of inflation over a time period for a basket of goods and…

Q: Table 28-4 2010 Labor Data for Adults (ages 16 and older) in Meditor Males not in labor force 45…

A: Unemployment refers that when population willing to work but dont have job , so here we calculate…

Q: Year CPI 2010 189 2011 211 Consider the data in the table above of the consumer price index for 2010…

A: CPI is measured using fixed basket of goods.

Q: In 2004 the price of one kilogram of chicken in Canada was $5.44 and in 2020 it was $7.41. If the…

A: Consumer Price Index(CPI), implies the prices(P) of a representative basket of goods procured by…

Q: Assume that last year's inflation rate is the same as the expect O A. decreases. O B. increases. C.…

A: The correct answer is option C. The phillips curve equation is : π = πe - €(U - U*) where U* =…

Q: Exhibit 6-3 Year CPI 1 141.5 2 139.2 3 142.3 4 146.6 Refer to Exhibit 6-3. Prices changed by percent…

A: Consumer price index measures the weighted average of a fixed market basket of goods and services.…

Q: Assume the CPI was 100.0 in 2002 and 125.2 in 2014. Jan’s wage at ABC Innovation was $60,000 in 2002…

A: Gross Domestic Product (GDP) refers to the total or final value of all the goods and services that…

Q: Year CPI 2010 189 2011 211 Consider the data in the table above of the consumer price index for 2010…

A: Base year is the year whose quantity is used in the market basket of goods and services used to…

Q: Number of people Component (millions) Total population 246 Working-age population 207 Not in the…

A: Labor force participation rate is the percentage of working age of population that is part of the…

Q: Becky and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a…

A: Nominal wage = Real wage + Inflation rate

Q: 40. Year CPI 2006 100 2007 136 the rate of inflation for 2007 is О а. 36% O b. 3.6% O . 63% O d.…

A: 1) The rate of inflation is given as Rate of inflation in 2007= [(CPI2017-…

Q: estion 8 Table 20-15 Nominal Average Hourly Earnings $10 Year CPI 2014 1.00 2015 10 1.05 2016 12…

A: According to the given table, needed information is: Nominal wage in 2014: $10 Nominal wages in…

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: 4. A country has a total adult population of 10 million, and of these 210 thousand are currently out…

A: "Unemployment rate is obtained by multiplying the ratio of unemployed population to labor force by…

Q: Quantity Price (2009) $55 Quantity Price Item (2009) (2010) (2010) Sneakers $60 Manicures $35 $40…

A: CPI is a statistical measure that estimates the variation in the price level of a common basket of…

Q: QUESTION 18 To calculate the CPI, the Bureau of Labor Statistics uses O a. the prices of goods and…

A: In order to measure CPI, a base year a selected and the changes in prices from the base period to…

Q: When economists speak of the CPI bias, they are referring to O A. the tendency for the CPI to…

A: Consumer Price Index shows the weighted average value of a basket of goods. CPI calculated by the…

Q: If the nominal wage is higher than real wage, it should be that O Prices are increasing and then…

A: Nominal wages are wages expressed in a monetary form while real wages are adjusted for inflation.

Q: If there are only two goods, apples and bikes produced in the economy; in 2015 total production of…

A: Inflation rate = % Change in CPI, where CPI in 2015 = 100 (2015 being base year) CPI in 2016 = (Cost…

Q: A basket of products and services cost $400 in the base year. If the Consumer Price Index (CPI) in…

A: CPI measures the price of market basket of goods and services bought by a consumer. Inflation rate…

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

A: "CPI is computed by multiplying 100 by the ratio of basket's cost in the particular year to the…

Q: If the cost of health and personal care increases by 20 percent, then, other things the same, how…

A: The consumer price index (CPI) basically measure changes in the prices of goods and services…

Concept explainers

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

Question

Please solve it .

The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of $40,000 in 1990, what would be a salary with equivalent purchasing power in 20103
Select one:
O a. $66,565
O b. $45,977
Oc. $87 200
O d. $143.486

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the GDP deflator to convert from nominal to real would be more appropriate than using the CPI.
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:
If you an? out of school but working part time, are you considered employed or unemployed in U.S. labor statistics? If you are a full time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greater at Wal-Mart are you considered employed or not in the labor force?
The index number representing the price level changes from 110 to 115 in one year and then from 115 to 120 the next year. Since the index number increases by five each year, is five inflation rate each year? Is the inflation rate the same each year? Explain your answer.
Why do you mink the U.S. experience with inflation over the last 50 years has been so much milder than in many other countries?
What happens to the labor force participation rate when employed individuals are reclassified as unemployed? What happens when they are reclassified as discouraged workers?
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.