please help me solve these problems 68 UNIT 2 Macroeconomics LESSON 2 ACTIVITY 11 (continued) Year 1
Fantastic news! We've Found the answer you've been seeking!
Question:
please help me solve these problems
Transcribed Image Text:
68 UNIT 2 Macroeconomics LESSON 2 ACTIVITY 11 (continued) Year 1 as well as in the base year. The rate of change in this index is determined by looking at the per- centage change from one year to the next. If, for example, the consumer price index were 150 in one year and 165 the next, then the year-to-year percentage change is 10 percent. You can compute the change using this formula: Price change change in CPI beginning CPI X 100 Here's the calculation for the example above: 165 150 Price change = x 100 = 10% 150 Fill in the blanks in Figure 11.2, and then use the data to answer the questions. Figure 11.2 Prices of Three Goods Compared with Base-Year Price Quantity Bought in Base Year Unit Price in Base Year Spending in Base Year Unit Price in Year 1 Spending in Year 1 Unit Price in Year 2 Spending in Year 2 Whole pizza 30 $5.00 $7.00 $9.00 Prerecorded audio cassette 40 6.00 5.00 4.00 Six-pack of soda 60 1.50 2.00 2.50 Total 4. What is the total cost of buying all the items in Year 2? 5. What is the CPI for Year 2? 6. What is the percentage increase in prices from the base year to Year 2? 7. In August 2000 the CPI was 172.8, and in August 2001 the CPI was 177.50. What was the percent- age change in prices for this 12-month period? Part C Measuring Short-Run Economic Growth quan- The gross To measure fluctuations in output (short-run economic growth), we measure increases in the tity of goods and services produced in the economy from quarter to quarter or year to year. domestic product, or GDP, is commonly used to measure economic growth. The GDP is the dollar value at market prices of all final goods and services produced in the economy during a stated period. Advanced Placement Economics Macroeconomics: Student Activities National Council on Economic Education, New York, N.Y. 68 UNIT 2 Macroeconomics LESSON 2 ACTIVITY 11 (continued) Year 1 as well as in the base year. The rate of change in this index is determined by looking at the per- centage change from one year to the next. If, for example, the consumer price index were 150 in one year and 165 the next, then the year-to-year percentage change is 10 percent. You can compute the change using this formula: Price change change in CPI beginning CPI X 100 Here's the calculation for the example above: 165 150 Price change = x 100 = 10% 150 Fill in the blanks in Figure 11.2, and then use the data to answer the questions. Figure 11.2 Prices of Three Goods Compared with Base-Year Price Quantity Bought in Base Year Unit Price in Base Year Spending in Base Year Unit Price in Year 1 Spending in Year 1 Unit Price in Year 2 Spending in Year 2 Whole pizza 30 $5.00 $7.00 $9.00 Prerecorded audio cassette 40 6.00 5.00 4.00 Six-pack of soda 60 1.50 2.00 2.50 Total 4. What is the total cost of buying all the items in Year 2? 5. What is the CPI for Year 2? 6. What is the percentage increase in prices from the base year to Year 2? 7. In August 2000 the CPI was 172.8, and in August 2001 the CPI was 177.50. What was the percent- age change in prices for this 12-month period? Part C Measuring Short-Run Economic Growth quan- The gross To measure fluctuations in output (short-run economic growth), we measure increases in the tity of goods and services produced in the economy from quarter to quarter or year to year. domestic product, or GDP, is commonly used to measure economic growth. The GDP is the dollar value at market prices of all final goods and services produced in the economy during a stated period. Advanced Placement Economics Macroeconomics: Student Activities National Council on Economic Education, New York, N.Y.
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these economics questions
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Write a program that takes a start string and a stop string as commandline arguments and prints all substrings of a given string that start with the first, end with the second, and otherwise contain...
-
The COP of the gas air-conditioning cycle of Problem 10.7 is nearest: (a) 0.29 (b) 1.05 (c) 1.34 (d) 1.98 Heat exchange| | 100 C Gas net comD Turbine o C 80 kPa Heat exchanger
-
What information does the balance sheet contain?
-
The Tuckers owned an RV that they insured through American Family. On August 26, 2012, their RV was struck by lightning and damaged. The Tuckers reported the damage to American Family. In March 2013,...
-
Outdoor Inn, a camping equipment manufacturer in southern Utah, is developing a production schedule for a popular type of tent, the Double Inn. Orders have been received for 180 of these to be...
-
Assume your health insurance has a $500 deductible and a 10% co-pay. How much would you have to pay for a $800 medical bill, assuming this is the only charge you have for the entire year?Disability...
-
XYZ Inc is a manufacturer of power equipment. It has factories across the US and its customer base includes retailers as well as individuals, to whom direct sales are made through their website. The...
-
Analyze the macroenvironmental factors affecting Amazon and Alibaba in India (PESTEL model). What is meant by India as a country full of countries? 2) How should Alibaba and Amazon analyze...
-
Provide the native schedule file of an updated schedule that shows that your project is behind schedule.
-
in the U.K, the power companies supply an rms voltage of 240V to most home outlets. If you were to try and use your standard U.S. rated 1790W (at 120V) hairdrying in the u.K, without using...
-
A procurement specialist cannot be effective unless they have an excellent knowledge of Con- tract Law. Do you agree?
-
Two wheels can rotate freely about fixed axles through their centers. The wheels have the same mass, but one has twice the radius of the other. Forces F1 and F2 are applied as shown such that the...
-
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $3,200. The division sales for the year were $1,052,000 and the...
-
David and Darlene Jasper have one child, Sam, who is 6 years old. The Jaspers reside at 4639 Honeysuckle Lane, Los Angeles, CA 90248. David's Social Security number is 577-11-3311, Darlene's is...
-
Mike sells his home to Jane on April 2, 2012. Jane pays the property taxes covering the full calendar year in October, which amount to $2,500. How much may Mike and Jane each deduct for property...
-
Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985. He also acquired a rental house in 2012, which he actively manages. During 2012, Walter's share of the...
-
What can a multinational firm do to reduce the level of stress that expatriates may feel as a result of real or perceived terrorist threats? Explain. One of the concomitants of international...
-
Form an even number of teams of five members each, with one pro team and one con team working for the same university. The pro team is asked to defend the advantage of opening a branch campus, while...
-
Research some recent articles dealing with the recent push by U.S. universities to start training foreign students abroad. Based on what you have read, what would you conclude in terms of the...
Study smarter with the SolutionInn App