Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 24, Problem 2SPPA
To determine
To identify:
The events that will increase the
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A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
Karaoke Machines
CDs
Quantity
Price
Quantity
Price
(Dollars)
(Dollars)
2020
20
50
60
5
2021
21
70
80
6
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2020 as the base year, and fix the basket at 2 karaoke machines and 6 CDs.)
Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is . (Note: Again, use 2020 as the base year.)
Which of the following statements is correct? Check all that apply.
The CPI allows the basket of goods and services to change.
The GDP deflator allows the basket of goods and services to change.
The inflation rate in 2021 is not the same using the two methods.
A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
Karaoke Machines
CDs
Quantity
Price
Quantity
Price
(Dollars)
(Dollars)
2020
20
50
60
5
2021
21
70
80
6
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2020 as the base year, and fix the basket at 2 karaoke machines and 6 CDs.)
Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is . (Note: Again, use 2020 as the base year.)
Which of the following statements is correct? Check all that apply.
The GDP deflator holds the basket of goods and services constant.
The CPI holds the basket of goods and services constant.
The inflation rate in 2021 is the same using the two methods.
The consumers in the economy buys only two general types of products: Apples, and Bananas.
Price and Quantity information of these items over a period are shown below:
Year 2019
Year 2020
Product
Quantity
Average Price per Unit
Quantity
Average Price per Unit
Apples
5
$5
9
$12
Bananas
15
$20
21
$20
Using year 2020 as the base year, the economy's consumer price index (CPI) in year 2019 is ______.
(Your answer should include the first decimal point, if any.)
Chapter 24 Solutions
Foundations of Economics (8th Edition)
Ch. 24 - Prob. 1SPPACh. 24 - Prob. 2SPPACh. 24 - Prob. 3SPPACh. 24 - Prob. 4SPPACh. 24 - Prob. 5SPPACh. 24 - Prob. 6SPPACh. 24 - Prob. 7SPPACh. 24 - Prob. 8SPPACh. 24 - Prob. 9SPPACh. 24 - Prob. 10SPPA
Ch. 24 - Prob. 11SPPACh. 24 - Prob. 1IAPACh. 24 - Prob. 2IAPACh. 24 - Prob. 3IAPACh. 24 - Prob. 4IAPACh. 24 - Prob. 5IAPACh. 24 - Prob. 6IAPACh. 24 - Prob. 7IAPACh. 24 - Prob. 8IAPACh. 24 - Prob. 9IAPACh. 24 - Prob. 1MCQCh. 24 - Prob. 2MCQCh. 24 - Prob. 3MCQCh. 24 - Prob. 4MCQCh. 24 - Prob. 5MCQCh. 24 - Prob. 6MCQCh. 24 - Prob. 7MCQCh. 24 - Prob. 8MCQ
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