The following table lists the prices of a small market basket purchased in both 2012 and...

 

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The following table lists the prices of a small market basket purchased in both 2012 and 2022. Assuming that this basket of goods is representative of all goods and services. a, b. Compute the cost of the market basket in 2012 and 2022. Instructions: In the table, enter your responses as a whole number. Item Coffee Tuition Pizza Movie download Gasoline Quantity 20 pounds 1 year 100 pizzas 90 movies 1,000 gallons Price per Unit in 2012 $7 $6,000 $13 $4 $2 Total in 2012 Cost of Market Basket in 2012 (=quantity*2012 price) Price per Unit in 2022 $8 $10,000 $16 $2 $3 Total in 2022 Cost of Market in 2022 (-quantity*2022 price) Instructions: Round your response to two decimal places. c. By how much has the average price level risen between 2012 and 2022? Hint: Compare the total basket cost in 2022 to the total basket cost in 2012. 1% d. The average household's nominal income increased from $40,000 to $60,000 between 2012 and 2022. What happened to its real income? Real Income [Click to select) The following table lists the prices of a small market basket purchased in both 2012 and 2022. Assuming that this basket of goods is representative of all goods and services. a, b. Compute the cost of the market basket in 2012 and 2022. Instructions: In the table, enter your responses as a whole number. Item Coffee Tuition Pizza Movie download Gasoline Quantity 20 pounds 1 year 100 pizzas 90 movies 1,000 gallons Price per Unit in 2012 $7 $6,000 $13 $4 $2 Total in 2012 Cost of Market Basket in 2012 (=quantity*2012 price) Price per Unit in 2022 $8 $10,000 $16 $2 $3 Total in 2022 Cost of Market in 2022 (-quantity*2022 price) Instructions: Round your response to two decimal places. c. By how much has the average price level risen between 2012 and 2022? Hint: Compare the total basket cost in 2022 to the total basket cost in 2012. 1% d. The average household's nominal income increased from $40,000 to $60,000 between 2012 and 2022. What happened to its real income? Real Income [Click to select)

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