Calculate the growth rate in real GDP for 2012. (using 1 decimal place Calculate the growth rate in real GDP for 2013. (using 1 decimal place Calculate the cost of the market basket for 2011 (using 1 decimal place). 96
Q: A continuous random variable X is uniformly distributed over interval [2, 5]. What is the standard…
A: If X is uniform distribution whose values lies in the interval [a , b] where 'a' and 'b' are the…
Q: Over the past few year's consumer tastes and the number of buyers in the market for a game called…
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…
Q: Pierce Manufacturing determines that the daily revenue, in dollars, from the sale of x lawn chairs…
A: The revenue function will multiply the level of output by the price function. Revenue will be…
Q: The following table shows a money demand schedule, which is the quantity of money demanded at…
A: Equilibrium in the money is reached where quantity of money demanded is equal to quantity of money…
Q: Use the formula: F = P (1 + i) 1. You wish to invest money now in order to have $600,000 after four…
A: Future value is the value of investment at the end of planning horizon. Present value is the value…
Q: You are the mayor of your hometown, and one day you arrive at city hall to find angry voters…
A: I would pursue a number of possibilities if I were the mayor of my hometown to improve the…
Q: For th below two machines and based on AW analysis which machine we should select? MARR=10% Machine…
A: Machine A Machine B First Cost 26,612 140,454 Annual Cost 12,417 7,170 Salvage Value 4,135 -…
Q: What could be the best explanation to support the decision of the United States regarding its…
A: Political economics studies how the political and economic systems are dependent across borders.
Q: A 10% increase in the price of soda leads to a 20 percent increase in the quantity of iced tea…
A: To determine how much demand for one commodity will change in response to a change in the price of…
Q: Use the table to answer the questions. Define productivity as GDP per worker, and please enter all…
A: GDP refers to the sum total of the market value of the final goods and services produced in a…
Q: The productivity of labor is defined as the number of hours a worker spends at work.…
A: Productivity of labor or labor productivity shows the output produced per hour. The higher…
Q: Stores commonly offer a cheaper unit price for large quantity purchases. Quantity 1 2 5 10 20 Unit…
A: For the two-variable regression model, the slope coefficient is calculated as…
Q: What is the capitalized cost of a machine with an initial cost of $250,000, maintenance and…
A: Capitalised cost is the present worth of the project with infinite life. CC = A(P/A, i, n).
Q: Explain how knowledge of trade theories and policies helps to understand the environment and develop…
A: The theories and policies of international trade are based on various models for different kinds of…
Q: a.What was world health and safety like before the current system? What were the drivers to create a…
A: To manage the health care and safety of employees in the work environment it is of utmost importance…
Q: Your company wants to purchase computerized milling equipment from XYZ, Inc. The contract being…
A: Present value considers the future value and uses a discount rate or the rate of interest that could…
Q: Calculate the amount of money Jessica had to deposit in an investment fund growing at an interest…
A: Financial markets include the trade of money instruments in the form of hard money or any other…
Q: Theodore is considering a 1-year training program, which charges $20,000 in tuition, to learn how to…
A: Present worth estimate the effect of time on money. PW is what a sum of money or a series of cash…
Q: Pritta Consulting is a firm of consultants which operates in Argentina. An analysis of its monthly…
A: Firms incur costs of two types, one fixed and the other variable. Fixed costs are incurred…
Q: The equation for a supply curve is P = 3Q - 8. What is the elasticity in moving from a price of 4…
A: Price elasticity of supply: It measures the percentage change in the quantity supplied for a 1%…
Q: Q2. Consider the simple Keynesian model of income Determination Ct = Bo + B₁Yt + Me 0<B₁<1 Y₁ = C₁ +…
A: First of all, we have to know the term simultaneous equation model. Simultaneous equation model is a…
Q: 5. Say’s Law _____________ because ___________. The Law of demand is _____ true because: Always…
A: Say’s Law defines the relationship between income and production by stating that, in order to earn…
Q: 2. The Ricardian Model and Argentina Below are several questions about the Ricardian Model in the…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
Q: 4. Berikan perbezaan antara 'model penggunaan dengan 'model permintaan'. Kemukakan contoh-contoh…
A: A consumption model is a valuing model is a help arrangement and installment conspire in which the…
Q: A food manufacturer is trying to maximize profit by selling wheat-based cereal (C) and wheat…
A: Cereal C = 31wc - 1.5wc2 Bread. B = 66wb - 2wb2 Constraint. wc + wb = 9055
Q: The October 18, 2022, Wall Street Journal reports that there is an ongoing shortage of baby formula…
A: Demand and Supply of a good not only depends on its price but also on a lot of factors. If the…
Q: An asset is purchased for P 90,000. Its estimated life is 10 years, after which is will be sold for…
A: Cost of Asset = 90,000 n = 10 Years Sales price = 1000
Q: QUESTION 5 For the below ME alternatives, which machine should be selected based on the AW analysis.…
A: When more than two alternatives are offered for a project and their lifespans differ, the annual…
Q: Assume the price of good Y increases by 2% and the cross price elasticity of demand with good X is…
A: Cross price elasticity (CPE) measures the percentage change in quantity of one good due to…
Q: You own a house worth $700,000 that is located on a river. If the river floods moderately, the house…
A: Estimated Cost: The estimated cost is the projected amount that may be arouse in completing a…
Q: A particular computing company finds that its weekly profit, in dollars, from the production and…
A: Marginal profit is the additional profit earned when an additional unit of output is produced.
Q: a. bi d. which of the Car coays government influence supply the ? Subsriches, regulation and…
A: The quantity of an item or service that a manufacturer is willing to offer at each price is what we…
Q: f the government wants to decrease the quantity consumed of cigarettes 20%, what percentage of tax…
A: Elasticity of demand measures the degree of change in the demand in response to the change in the…
Q: If this firm is a monopoly, at what quantity will profit be maximized? If this is a perfectly…
A: In case of Perfect Competition there are large number of sellers that sell identical products. The…
Q: and 12. How are equilibrium quantity demanded dumine economy? Through traditions and customs b.…
A: Equilibrium is characterised as a state in which the quantity of the good demanded and the quantity…
Q: In a closed economy, consumers spend $400 regardless of the level of income, and the marginal…
A: The GDP is the value of the goods and services produced within the boundaries of the nation. It…
Q: Given the two machines' data First Cost Salvage value Annual operation Annual maintenance Machine A…
A: Given that; Machine A Machine B First Cost 8000 14000 Salvage Value 0 2000 Annual…
Q: 6. The accompanying table indicates the U.S. domestic demand schedule and domestic supply schedule…
A: Introduction The quantity of a commodity demanded depends on the price of that commodity and…
Q: A marginal cost curve mersects average total cost at po. This curve also intersects average total…
A: Marginal cost The change in overall cost whenever the quantity produced increases by one unit is…
Q: Suppose that under free trade a final good F has a price of $1,000 and that the prices of two…
A: Price of Good F = $1000 Given, Price of Input A = $300 Price of Input B = $500 Tariff on…
Q: Quota O people who favor trade barriers that protect domestic industries O tax placed on imports to…
A: Quota is a trade barrier imposed by importing country.
Q: Your company has a customer who is shutting down a production line, and it is your responsibility to…
A: Expected profit is the probability of getting a profit multiplied by the profit, by the result, and…
Q: If Jonathan received an $1200 bonus and his MPC is 0.70, his consumption rises by $ and his saving…
A: Marginal propensity to consume shows the how much of income will be devoted to consumption. MPS = 1…
Q: How does perfect competition address the problems of Allocative and Productive efficiency? Assume…
A: In a theoretical market system known as perfect competition, there are numerous customers and…
Q: Hollygan Co. must choose between gas-powered and an electric-powered forklift truck for moving…
A: An effective way to assess an investment decision is by looking at the net present value (NPV). The…
Q: Which of the following is a challenge of government setting a price floor? Which of the following…
A: The floor price is the minimum price below which a price can not fall. The floor price set by the…
Q: Stores commonly offer a cheaper unit price for large quantity purchases. Quantity 1 2 5 10 20 Unit…
A: Slope of the demand curve is when their price increase from P1 to P2 and the resulting change in…
Q: The Office of the Auditor General is mandated to conduct audits of all public institutions in…
A: * SOLUTION :- Auditing means the concept of evaluating and checking all the desired transactions…
Q: A young engineer is considering establishing his own small company. An investment of P400,000 will…
A: A rate of return refers to the net gain or the loss of an investment over a certain time period…
Q: With a policy of nominal GDP targeting, if the Fed expected 6% growth in real GDP and wanted an…
A: Relationship between nominal GDP, real GDP, and price level. Nominal GDP = Real GDP * Price level.…
Step by step
Solved in 4 steps with 3 images
- Consider the following table. Price Price Goods Production Import Export (2019) (2020) Good 49 17 18 A Good 36 10 19 B Good 22 11 8 C Good 59 59 46 39 Calculate the following (give your answer in 2-decimal places when applicable): a. The GDP for 2019: b. The CPI for 2020 (consider 2019 as the base year):As a result of a drought, prices and produced quantities in a country change as follows: Assume that the economy produces and consumes only the above agricultural products.a) Calculate the nominal GDP and the real GDP for the year 2021 with the base year 2020.b) By how many percent have the prices of goods increased?c) Calculate the CPI for the year 2021 according to Laspeyres and Paasche.d) Describe the general differences between the CPI and the GDP deflator.The market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts, and 2 pairs of pants. In 2005, bread cost $1.00 per loaf, milk cost $1.50 per gallon, shirts cost $6.00 each, and pants cost $10.00 per pair. In 2006, bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost $7.00 each, and pants cost $12.00 per pair. Using 2005 as the base year, what was Aquilonia’s inflation rate in 2006? This question is stumping me. I thought that this answer was 124.4 but it seems that it is 24.4. I cant figure it out
- Year Price of a pound of Bacon (10 units) Price of a dozen Eggs (15 units) Price of a pound of Coffee (20 units) 1 $5.50 2 $5.25 $1.75 $2.00 $4.00 $4.50 3 $5.50 $2.00 $5.00 Use the information in the table above to calculate the CPI in Year 2, using Year 1 as the base year. Round to the nearest whole number. The Consumer Price Index isQuantity (2015) 20 Price (RM) (2015) 3.00 Quantity (2016) 22 Price (RM) (2016) 4.00 Item Loaves of bread Jugs of soda 20 2.00 30 1.50 1. The tables above give the purchases of an average consumer in a small economy. Suppose 2015 is the reference base period. a) What is the cost of the CPI basket using 2015 prices? a) What is the cost of the CPI basket using 2016 prices? b) What is the CPI in 2015? ( c) What is the CPI in 2016? d) What is the inflation rate in 2016? Explain e) What is the expected real income in 2016? f) What is the nominal GDP in 2015? In 2016? g) What is the real GDP in 2015? In 2016? h) Does the economy achieve economic growth in 2016?In each of the following cases, explain clearly how the CPI might misrepresent changes in consumer prices (Commodity substitution bias, Introduction of new goods, or Un-measured quality changes). In each case, speculate as to whether CPI overstates or understates consumer expenses. (a) By 1990, expensive personal computers became a common expenditure in consumer baskets. However, some governments were still calculating the consumer’s basket using a 1975 survey. (b) Between 2007 and 2015, there were significant improvements in smartphones. (c) Compared to 1970, households in 2015 took more vacations. (d) Food quality has deteriorated over time, even as consumers purchase the same amount.
- The island nation of Coronia subsists entirely on pancakes and syrup. That is, they produce and consume only pancakes and syrup in the following amounts: Pancake Mix (cases) Maple Syrup (gallons) Quantity Price Quantity Price 2019 16 5 8 30 2020 48 6 10 50 (a) Using a method like the CPI, compute the CPI in 2019 and 2020 and percentage change in the overall price level from 2019 to 2020 (inflation rate). Use 2019 as the base year and fix the market basket at 4 pancakes and 2 syrups. (b) Using a method like the GDP deflator, compute the GDP deflator in 2019 and 2020 and percentage change in the overall price level from 2019 to 2020 (inflation rate). Use 2019 as the base year. (c) Is there a difference in the inflation rate using the two methods? Explain why or why not.The table shows the cost of a fixed basket of goods that a typical urban consumer would buy in the economy of Kindleberger. The base period for the consumer price index (CPI) is the year 2000. Please specify answers to two decimal places. Year Cost of a basket of goods 2000 $5,150.00 2011 $4,500.00 2012 $7,725.00 What is the CPI for 2000? CPI for 2000: What is the CPI for 2011? CPI for 2011: What is the CPI for 2012? CPI for 2012:Two countries, Country N in North America and Country S in South America, have the same CPI basket. Year 2000 is the CPI base year for both countries. In that year, the cost of CPI basket in Country N is $N100, and in country S is $s1000, where $N and $s are their respective currencies. Twenty years later, in 2020, the CPI in Country N rose to 240, and in Country S to 360. a) In the ideal world in which the purchasing power parity (PPP) holds true, what should be the nominal exchange between $s and $N in Year 2000 and in Year 2020. Show calculations and explain the change in nominal exchange rate. b) Suppose in reality, the nominal exchange rage between the two currencies is 18 $s per $N in Year 2020. First, explain why the nominal exchange rate differs from your calculation above. Second, calculate the real exchange rate between the two countries, and explain the meaning of your calculated result. c) During Year 2021, the growth of the real GDP in the two countries are, 0% in country…
- Price (2011) Quantity (2012) $5.00 $6.00 Item Quantity (2011) Price (2012) Magazines 450 200 $4.50 $8.00 $10.50 400 Movie tickets 50 Pizzas 100 $10.00 120 The data in the table above shows the consumption by families in an economy. The year 2011 is the reference base period. Based on the table above, the CPI for 2012 is A. 105.1. B. 5.0 percent. C. 102.5. O D. 100. O E. 98.5.The market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts and 2 pants. In 2001 bread cost $1.00 per loaf, milk cost $1.50 per gallon, shirts cost $6.00 each and pants cost $10.00 per pair. In 2002 bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost $7.00 each and pants cost $12.00 per pair. What was the inflation rate, as measured by the CPI, for Aquilonia between 2001 and 2002? O a. It is impossible to determine without knowing the base year. O b. 21.6 percent O C 24.4 percent d. 30 percent Which of the following statements is correct? O a. GDP at factor cost = Net price increase + direct tax O b. GDP at factor cost = Net Value Addition + Depreciation O c. GDP at factor cost = Net price increase + indirect tax O d. GDP at factor cost = Net Value Addition - DepreciationThe market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts and 2 pants. In 2001 bread cost $1.00 per loaf, milk cost $1.50 per gallon, shirts cost $6.00 each and pants cost $10.00 per pair. In 2002 bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost $7.00 each and pants cost $12.00 per pair. What was the inflation rate, as measured by the CPI, for Aquilonia between 2001 and 2002? a. 24.4 percent b. 21.6 percent c. It is impossible to determine without knowing the base year. d. 30 percent