Refer to Table 20-12. Consider a simple economy that produces only three products: burritos, flashlights, and golf balls. Use the information in the table to calculate the inflation rate for 2016, as measured by the consumer price index
What will be an ideal response?
Total expenditures for 2001 = (10 × $1.00 ) + (15 × $5.00 ) + (8 × $2.00 ) = $101.00.
Total expenditures for 2015 = (10 × $1.50 ) + (15 × $7.00 ) + (8 × $3.00 ) = $144.00.
Total expenditures for 2016 = (10 × $1.75 ) + (15 × $6.75 ) + (8 × $3.50 ) = $146.75.
The CPI for 2015 = [($144.00/$101.
You might also like to view...
Refer to the above figure. The marginal propensity to consume and the marginal propensity to save
A) are 0.75 and 0.25, respectively. B) depend on the level of income. C) are 0.90 and 0.10, respectively. D) are 0.83 and 0.17, respectively.
Sue consumes only sub sandwiches and Mountain Dew. Subs and Mountain Dew are complements. If the price of a Mountain Dew increases
A) Sue's demand curve for sub sandwiches will shift rightward. B) Sue will move downward along her demand curve for Mountain Dews. C) Sue will move upward along her demand curve for Mountain Dews. D) Both answers A and C are correct.
If MPC is .8 and investment rises by $30 billion, GDP will rise by $_________.
Fill in the blank(s) with the appropriate word(s).
Figure 18.3Refer to Figure 18.3. In autarky, the maximum amount of scooters that Livonia can produce is:
A. 120. B. 100. C. 80. D. 40.