The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 2008? \[\begin{array}{l} \text { U.S. CONSUMER PRICE INDEX }\\ \begin{array} { | c | c | } \hline \text { YEAR } & \begin{array} { c } \text { CONSUMER } \\ \text { PRICE INDEX } \end{array} \\ \hline 2005 & 195.27 \\ \hline 2006 & 201.56 \\ \hline 2007 & 207.34 \\ \hline 2008 & 215.25 \\ \hline 2009 & 214.57 \\ \hline 2010 & 218.08 \\ \hline \end{array} \end{array}\]

A) 3.81% B) 3.22% C) 1.64% D) 2.87% A) 3.81% B) 3.22% C) 1.64% D) 2.87%

(Table: Peanut Butter and Jelly Prices) Use Table: Peanut Butter and Jelly Prices. Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. What is the value of the market basket in 2017? \[\begin{array} { | l | l | l | l | } \hline & \text { Price in 2017 } & \text { Price in 2018 } & \text { Price in 2019 } \\ \hline \text { Peanut butter } & \$ 1.00 & \$ 1.10 & \$ 1.20 \\ \hline \text { Jelly } & \$ 2.00 & \$ 2.25 & \$ 2.50 \\ \hline \end{array}\]

A) $3 B) $3. C) $40 D) $40. E) $42 F)$42. G)$44.50. H)$44.50 A) $3 B) $3. C) $40 D) $40. E) $42 F)$42. G)$44.50. H)$44.50

(Table: Price Index) Use Table: Price Index. What is the inflation rate between 2018 and 2019? \[\begin{array} { | l | l | } \hline \text { Year } & \text { Price Index } \\ \hline 2016 & 100 \\ \hline 2017 & 104 \\ \hline 2018 & 103 \\ \hline 2019 & 110 \\ \hline \end{array}\]

A) 6.8% B) 6.8%. C) 4.6% D) 4.6%. E) 7.9% F)7.9%. G)6.1% H)6.1%. A) 6.8% B) 6.8%. C) 4.6% D) 4.6%. E) 7.9% F)7.9%. G)6.1% H)6.1%.

(Table: The Consumer Price Index) Use Table: The Consumer Price Index. \[\begin{array} { | l | l | } \hline \text { Year } & \text { Consumer Price Index } \\ \hline 1 & 80 \\ \hline \begin{array} { l } 2 \text { (base } \\ \text { year) } \end{array} & 100 \\ \hline 3 & 105 \\ \hline 4 & 125 \\ \hline 5 & 150 \\ \hline \end{array}\] The approximate rate of inflation in year 5 is:

A) 25% B) 25%. C) 10% D) 10%. E) 19% F)19%. G)20% H)20%. A) 25% B) 25%. C) 10% D) 10%. E) 19% F)19%. G)20% H)20%.

(Table: The Consumer Price Index) Use Table: The Consumer Price Index. The approximate rate of inflation in year 2 is: \[\begin{array} { | l | l | } \hline \text { Year } & \text { Consumer Price Index } \\ \hline 1 & 80 \\ \hline \begin{array} { l } \text { (base } \\ \text { year) } \end{array} & 100 \\ \hline 3 & 105 \\ \hline 4 & 125 \\ \hline 5 & 150 \\ \hline \end{array}\]

A) 10%. B) 10% C) 19% D) 19%. E) 20%. F)20% G)25%. H)25% A) 10%. B) 10% C) 19% D) 19%. E) 20%. F)20% G)25%. H)25%

Exam 24: Inflation and Money

The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 2008? U.S. CONSUMER PRICE INDEX YEAR CONSUMER PRICE INDEX 2005 195.27 2006 201.56 2007 207.34 2008 215.25 2009 214.57 2010 218.08

(Multiple Choice)

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Question 61

A fixed nominal interest rate of _ with _ inflation will yield the highest real rate of return for a lender.

(Multiple Choice)

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Question 62

In 1982, the movie Blade Runner made almost $19 million in its opening weekend. In 2017, Blade Runner 2049 made almost $33 million in its opening weekend. The consumer price index in 1982 was 96.5. The consumer price index in 2017 was 245.1. In 2017 dollars, which movie made more money in its opening weekend?

(Essay)

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Question 63

If you see that inflation between last year and this year is 3%, this means that:

(Multiple Choice)

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Question 64

Money illusion is the:

(Multiple Choice)

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Question 65

(Table: Peanut Butter and Jelly Prices) Use Table: Peanut Butter and Jelly Prices. Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. What is the value of the market basket in 2017? Price in 2017 Price in 2018 Price in 2019 Peanut butter \ 1.00 \ 1.10 \ 1.20 Jelly \ 2.00 \ 2.25 \ 2.50

(Multiple Choice)

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Question 66

Hedging against inflation means:

(Multiple Choice)

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Question 67

You purchase a certificate of deposit and expect an inflation rate of 1.25% over the next year. Your nominal rate of interest is 2.1%. Over the next year, the actual inflation rate turns out to be 0.95%. What is your actual real rate of return?

(Multiple Choice)

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Question 68

Which of the following is NOT a step in calculating the inflation rate from one period to the next?

(Multiple Choice)

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Question 69

What is Iceland's real GDP if its nominal GDP is $25.9 billion (in current US$) and the GDP deflator is 124.5?

(Multiple Choice)

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Question 70

In 1971, when the consumer price index was 40.48, men earned a median income of $6,903 per year. If the consumer price index in 2012 was 229.6, how much was $6,903 in 2012 dollars?

(Multiple Choice)

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Question 71

(Table: Price Index) Use Table: Price Index. What is the inflation rate between 2018 and 2019? Year Price Index 2016 100 2017 104 2018 103 2019 110

(Multiple Choice)

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Question 72

(Table: The Consumer Price Index) Use Table: The Consumer Price Index. Year Consumer Price Index 1 80 2 (base year) 100 3 105 4 125 5 150 The approximate rate of inflation in year 5 is:

(Multiple Choice)

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Question 73

(Table: The Consumer Price Index) Use Table: The Consumer Price Index. The approximate rate of inflation in year 2 is: Year Consumer Price Index 1 80 (base year) 100 3 105 4 125 5 150

(Multiple Choice)

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Question 74

(Table: Market Basket of School Supplies) Use Table: Market Basket of School Supplies. The table shows the prices of three common school supplies in 2018 and 2019 and the quantities of these goods sold in 2018, the base year. The school supply price index for 2019 is: { \text { Table: Market Basket of School Supplies } } \\ \begin{array} { | l | l | l | l | } \hline \text { Good } & \text { Prices in 2018 (Base Year) } & \text { Quantity Bought (2018) } & \text { Prices in 2019 } \\ \hline \text { Backpack } & \$ 40 & 1,000 & \$ 50 \\ \hline \text { Notebook } & \$ 10 & 5,000 & \$ 12 \\ \hline \text { Highlighter } & \$ 1 & 2,000 & \$ 1.25 \\ \hline \end{array}

(Multiple Choice)

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Question 75

The CPI changes from 100 to 200. This means that:

(Multiple Choice)

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Question 76

If the consumer price index changes from 120 to 125 between December 2018 and December 2019, the:

(Multiple Choice)

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Question 77

Suppose that you typically purchase 12 salads, four pizzas, four steaks, and five pies. Last year, each salad was $7.99, each pizza was $10, each steak was $15, and each pie was $6. This year, you purchase the same basket, but each salad costs $8.49, each pizza costs $11, each steak is $14, and each pie is $6. (a) What was the cost of the basket last year? (b) What is the cost of the basket this year? (c) What is the rate of inflation or deflation from last year to this year?

(Short Answer)

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Question 78

What is the United Arab Emirates' real GDP if its nominal GDP is $414.18 billion (in current US$) and the GDP deflator is 105.45?

(Multiple Choice)

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Question 79

(Table: Peanut Butter and Jelly Prices) Use Table: Peanut Butter and Jelly Prices. Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. If 2017 is the base year, what is the value of the price index in 2019? Price in 2017 Price in 2018 Price in 2019 Peanut butter \ 1.00 \ 1.10 \ 1.20 Jelly \ 2.00 \ 2.25 \ 2.50

(Multiple Choice)

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Question 80

Exam 24: Inflation and Money

The table shows consumer price index data for the United States. Based on this information, what is the rate of inflation in 2008? U.S. CONSUMER PRICE INDEX YEAR CONSUMER PRICE INDEX 2005 195.27 2006 201.56 2007 207.34 2008 215.25 2009 214.57 2010 218.08

A fixed nominal interest rate of _____ with _____ inflation will yield the highest real rate of return for a lender.

If you see that inflation between last year and this year is 3%, this means that:

Money illusion is the:

Hedging against inflation means:

You purchase a certificate of deposit and expect an inflation rate of 1.25% over the next year. Your nominal rate of interest is 2.1%. Over the next year, the actual inflation rate turns out to be 0.95%. What is your actual real rate of return?

Which of the following is NOT a step in calculating the inflation rate from one period to the next?

What is Iceland's real GDP if its nominal GDP is $25.9 billion (in current US$) and the GDP deflator is 124.5?

In 1971, when the consumer price index was 40.48, men earned a median income of $6,903 per year. If the consumer price index in 2012 was 229.6, how much was $6,903 in 2012 dollars?

(Table: Price Index) Use Table: Price Index. What is the inflation rate between 2018 and 2019? Year Price Index 2016 100 2017 104 2018 103 2019 110

(Table: The Consumer Price Index) Use Table: The Consumer Price Index. Year Consumer Price Index 1 80 2 (base year) 100 3 105 4 125 5 150 The approximate rate of inflation in year 5 is:

(Table: The Consumer Price Index) Use Table: The Consumer Price Index. The approximate rate of inflation in year 2 is: Year Consumer Price Index 1 80 (base year) 100 3 105 4 125 5 150

The CPI changes from 100 to 200. This means that:

If the consumer price index changes from 120 to 125 between December 2018 and December 2019, the:

What is the United Arab Emirates' real GDP if its nominal GDP is $414.18 billion (in current US$) and the GDP deflator is 105.45?

The Core Principles of Economics

Demand: Thinking Like a Buyer

Supply: Thinking Like a Seller

Equilibrium: Where Supply Meets Demand

Elasticity: Measuring Responsiveness

When Governments Intervene in Markets

Welfare and Efficiency

Gains From Trade

International Trade

Externalities and Public Goods

Labor Demand and Supply

Wages, Workers, and Management

Inequality, Social Insurance, and Redistribution

Market Structure and Market Power

Entry, Exit, and Long-Run Profitability

Business Strategy

Sophisticated Pricing Strategies

Game Theory and Strategic Choices

Decisions Involving Uncertainty

Decisions With Private Information

Sizing up the Economy Using Gdp

Economic Growth

Unemployment

Consumption and Saving

Investment

The Financial Sector

International Finance and the Exchange Rate

Business Cycles

IS-MP Analysis: Interest Rates and Output

Phillips Curve

The Fed Model: Linking Interest Rates, Output, and Inflation

Aggregate Demand and Aggregate Supply

Monetary Policy

Government Spending, Taxes, and Fiscal Policy

Appendix: Aggregate Expenditure and the Multiplier

Filters

A fixed nominal interest rate of _ with _ inflation will yield the highest real rate of return for a lender.