The next five questions involve the following situation: Consider an economy with only three consumption goods: cocaine, silver, and Doge memes. The following table shows prices for 2017-2020. Use 2017 as the base year for any relevant calculations. Based on a 2017 survey, the typical consumer has an annual consumption of 20g of cocaine, 10 oz of silver, and 1,000 memes. Year Price of Cocaine (g) Price of Silver (oz) Price of a Meme 2017 $150 $17 $1 2018 $150 $16 $5 2019 $120 $16 $10 2020 $200 $28 $100 18. What is the CPI for 2017? (A) 100. (B) 196. (C) 301. (D) 2501. 19. What is the CPI for 2020? (A) 100. (В) 196. (C) 301. (D) 2501. 20. Based on these data and their associated Consumer Price Indices, what is the inflation rate from 2018 to 2020? (A) 2,501%. (B) 731%. (C) 100%. (D) 1,176%.

The next five questions involve the following situation: Consider an economy with only three consumption goods: cocaine, silver, and Doge memes. The following table shows prices for 2017-2020. Use 2017 as the base year for any relevant calculations. Based on a 2017 survey, the typical consumer has an annual consumption of 20g of cocaine, 10 oz of silver, and 1,000 memes. Year Price of Cocaine (g) Price of Silver (oz) Price of a Meme 2017 $150 $17 $1 2018 $150 $16 $5 2019 $120 $16 $10 2020 $200 $28 $100 18. What is the CPI for 2017? (A) 100. (B) 196. (C) 301. (D) 2501. 19. What is the CPI for 2020? (A) 100. (В) 196. (C) 301. (D) 2501. 20. Based on these data and their associated Consumer Price Indices, what is the inflation rate from 2018 to 2020? (A) 2,501%. (B) 731%. (C) 100%. (D) 1,176%.

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter7: Taking The Nation's Economic Pulse

Section: Chapter Questions

Problem 6CQ

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