Which of these statements best describes what inflation rate is?a. Inflation rate is useful for knowing the labor forceb. Inflation rate is used in determining profitsc. Inflation rate is calculated from consumer price indexd. Inflation rate is expressed in percentage terms

Inflation rate refers to the increase in the general price level. High rate of inflation is…

which of these statements best describes what inflation rate is? a. Inflation rate is useful for knowing the labor force b. Infiation rate is used in determining profits c Inflation rate is calculated from consumer price index d. Inflation rate is expressed in percentage terms

which of these statements best describes what inflation rate is? a. Inflation rate is useful for knowing the labor force b. Infiation rate is used in determining profits c Inflation rate is calculated from consumer price index d. Inflation rate is expressed in percentage terms

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 4.10P

See similar textbooks

Related questions

Q: Calculate inflation if real interest rate is 2% and Nominal Interest rate is 3.3%

A: The information being given is:- Real interest rate = 2% Nominal interest rate = 3.3% Inflation = ?

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: The average hourly wage in 1975 was $6.50, and $17 in 2002. CPI stood at 42 in 1975 and the CPI base…

A: CPI 2002 = 100 as base year Wage in 1975 = $6.50 Wage in 2002 = $17

Q: he country of South’s consumer price index was as follows: 2019 2020 132.5…

A: Inflation is a measure of determining an increase in the general price level of the economy.

Q: Find the value of inflation if real interest rate is 0 and nominal interest rate is 4.6%

A: We are given that:- Real interest rate = 0% Nominal interest rate = 4.6% Note- Real interest rate is…

Q: Problem 3: Again, consider the country of Opalia that produces two goods: footballs and basketballs.…

A: (a) Consumer price index (CPI) is a tool that measures the average price of the basket of goods that…

Q: The rate of inflation over the last two years has averaged 2% per year. Ati John feels like he is…

A: Inflation measures the rate at which the average price level of a basket of selected goods and…

Q: 12. Inflation a. Decreases everyone's nominal income. b. Decreases everyone's real income. c.…

A: Inflation means increase in average price level of goods and services. Nominal income is not…

Q: Which of these statements best describes what inflation rate is? a. Inflation rate is useful for…

A: 1-Labor Force Participation rate is used to measure labor force. The first option is incorrect. 2-…

Q: Hello can anyone please help me with this question,I was trying but I got really confused thanks in…

A: Average UK inflation = % Change in CPI = (263.2 / 156.9) - 1 = 1.677502 - 1 = 0.677502 = 67.7502%

Q: At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is…

A: CPI is measured using fixed basket of goods

Q: The rate of inflation in Zimbabwe rose in 2018 from 10.6% to 577.21% in 2020. What was the positive…

A: Inflation shows the increase in price level of goods and services in an economy. When price level…

Q: The student has 30000 rubles and decides to save them or spend. If he puts money in the bank, in a…

A: Interest rate works two ways, i.e., it is the cost of borrowing for the borrowers, and also the rate…

Q: a) is more difficult to calculate. 5) is not updated as frequently. =) underestimates true…

A: CPI is used to calculate inflation level in the economy.

Q: Suppose a family's Income increases by 5 percent at the same time that inflation Is 2 percent. Then…

A: Change in real income can be calculated as follows.

Q: a) In 2015 (the base year), the representative consumer bought 20 cinema tickets at $12 each, and 1…

A: The inevitable surge in the general levels of prices that takes place over the year is "inflation".

Q: What would be the inflation rate in Alaska if Nominal interest rate is 2% and real interest rate is…

A: The data presented in the question above is:- We are given with the information of the economy of…

Q: III. Find the cost of the basket Year Year 1 Orange 200 Quantity Price Quantity Price Quantity Price…

A: According to the question, it is given that : There are three goods offered in an economy :…

Q: a. What is this year's inflation rate? percent b. In contrast, suppose that the CPI was 140 last…

Q: The government has released the latest retail price index which suggests inflation was 1.62%. A…

A: As measured by the consumer price index (CPI), the change in the price of a basket of goods and…

Q: Calculate inflation if real interest rate is 12% and nominal interest rate is 15%

A: The Given information is as follows:- Real interest rate = 12% Nominal interest rate = 15% Inflation…

Q: 2010 2020 inal Salary ED 150,000 200,000 1.00 1.00 uired: Calculate real salary for 2010 Calculate…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first three question for you…

Q: Using the data in the table below, calculate the CPI and the inflation rate in each year, using 2013…

A: CPI = (cost of basket in current year/cost of basket in base year )*100 The base year is 2013…

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: In Year 1 the CPI was 100; 20 years later, it was 229. What was the annual rate of inflation? Round…

A: [Since more than 1 question are posted, only 1st question can be answered, as per answering policy]…

Q: Calculate inflation if real interest rate is 3% and the Nominal Interest rate is 5.3%

A: The given information is as follows:- Real interest rate = 3% Nominal interest rate = 5.3% We know…

Q: Define and explain the concept of Inflation and describe the difference between demand-pull and…

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

Q: Calculate inflation rate if the value of real interest rate is 3.1% and Nominal Interest rate is 4%

A: The given information is as follows:- Real interest rate = 3.1% Nominal interest rate = 4% We know…

Q: You learn next year (2019) that the CPI is 175. What is the inflation rate between 2018 and 2019?…

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

Q: The table below concerns Ogev, an economy in which the typical consumer's basket of goods contains…

A: In order to calculate the inflation rate, we have to calculate the cost of the basket of goods in…

Q: The formula we use to calculate the inflation rate for period t is Pt/(Pt-1-1). Select an answer and…

A: please find the answer below.

Q: YEAR Consumer Price Index 2017 100 2018 110 2019 121 According to the table above, Inflation rate in…

A: The consumer price index of different periods helps to determine the inflation rate in a specific…

Q: Last year the jones family earned $40,000. This year their income is $42,000. If the inflation rate…

A: The nominal wage or income of households changes as the inflation changes. They have a positive…

Q: Questuon The table shows the prices of products produced for three different years: year Chicken…

A: Answer: Given, Year Quantity of chicken Chicken Quantity of Broccoli Broccoli Price $…

Q: The country of Swedway monitors price changes on several hundred goods in 4 categories: food,…

A: The inflation rate is the measurement of change in the general price level of the baskets of goods…

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: Calculate the value of inflation if real interest rate is 6.5% and the nominal interest rate is 8.2%

A: The information given to us is as follows:- Real interest rate = 6.5% Nominal interest rate = 8.2%…

Q: Given the information in the table, what was the inflation rate in 2034 (expressed as a %)? Round to…

A: The consumer price index gauges changes after a few time in the general level of prices of goods and…

Q: Will the use pf Interest rates be effective when dealing with cost push inflation? Discuss

A: In an economy, cost-push inflation refers to the rise in the price level due to the supply-side…

Q: Suppose for Candyland the cost of a CPI basket is worth $500 in 2016, and the same basket is worth…

A: Cost of basket of goods in 2016 = 500 $ Cost of basket of goods in 2017 = 600 $ a. CPI for base…

Q: Year 2014 (base) 2015 2016 Product Quantity Price Quantity Price Quantity Price Beer 600 18 650 19.5…

A: Inflation rate is calculated by the percentage change in GDP deflator of two years. Nominal GDP…

Q: lease explain this correctly I upvote Not copy paste. Q) Would you rather live in the U.S. in…

A: The term “inflation” is defined as the overall or general increase in the price level of the nation.…

Q: Hello, I need help with number 8. I keep getting different answers

A: Solution of question number 8: The following table is given:

Q: In 2019 and in 2020, consumers in Dexter purchased only books and pens. The prices and quantities…

A: CPI takes market basket as fixed as per the base year.

Q: Using the table below, find the real value of a $1200 payment and find the amount that this $1200…

A: The consumer price index measures the price changes in the market basket of goods and services…

Q: a) Find the inflation rate in 2010, if the 2009 is the base year? b) Find the increase in the cost…

A: The inflation rate is the rate at which the prices of products and services rise in an economy.

Q: Refer following (A) Calculate CPI for the year 2018 and 2019 (B) Rate of inflation between the year…

A: Given: Base Year=2018 C1=Cost of market basket in base periodC1=(Price of 2018×Quantities in…

Q: Calculate the CPI of 2009. Calculate the inflation rate of 2009. If your salary in 2008 and 2009 was…

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

Q: (i)Given that 2019 is the base year, calculate the CPI for 2020 and determine the inflation rate…

A: The inflation rate is the rate of increase or the rate of increase in the normal price of selected…

Q: Refer to Table 2. What is the rate of inflation between 2010 and 2012? Question 24 options: a)…

A: Inflation would be the measure of the rise in the aggregate price level. The inflation would be the…

Question

Which of these statements best describes what inflation rate is?
a. Inflation rate is useful for knowing the labor force
b. Inflation rate is used in determining profits
c. Inflation rate is calculated from consumer price index
d. Inflation rate is expressed in percentage terms

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

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.
What has been a typical range of inflation in the U.S. economy in the last decade or so?
A fixed-rate mortgage has the same interest rate over the life of the loan, whether the mortgage is for 15 or 30 years. By contrast, an adjustable-rate mortgage changes with market interest rates over the life of the mortgage. If inflation falls unexpectedly by 3, what would likely happen to a homeowner with an adjustable-rate mortgage?
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.
Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of 20,000. However, if the inflation rate is 6 per year, how much buying power will that 20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.