Use the following consumer price index data to answer the questions. \[\begin{array} { | c | c | } \hline \text { YEAR } & \begin{array} { c } \text { CONSUMER } \\ \text { PRICE INDEX } \end{array} \\ \hline 2001 & 169.8 \\ \hline 2002 & 174.6 \\ \hline 2003 & 182.0 \\ \hline 2004 & 180.8 \\ \hline 2005 & 177.6 \\ \hline 2006 & 179.1 \\ \hline \end{array}\] (a) What was the inflation rate in 2003? (b) What was the inflation rate in 2005? (c) Out of the years shown in the table, which year(s) experienced deflation?

The answer of Use the following consumer price index data...

(Table: GDP II) Use Table: GDP II. Calculate the GDP deflator for 2019. \[\begin{array} { | l | l | l | } \hline & \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 9 } \\ \hline \text { Nominal GDP } & 400 & 500 \\ \hline \text { Real GDP } & 360 & 480 \\ \hline \end{array}\]

A) 111 B) 111. C) 104 D) 104. E) 90 F)90. G)96. H)96 A) 111 B) 111. C) 104 D) 104. E) 90 F)90. G)96. H)96

(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 2019? \[\begin{array} { | l | l | l | l | } \hline & \text { Price in 2017 } & \text { Price in 2018 } & \text { Price in 2019 } \\ \hline \text { Peanut butter } & \$ 1.00 & \$ 1.10 & \$ 1.20 \\ \hline \text { Jelly } & \$ 2.00 & \$ 2.25 & \$ 2.50 \\ \hline \end{array}\]

A) $62. B) $62 C) $49. D) $49 E) $42. F)$42 G)$44.50. H)$44.50 A) $62. B) $62 C) $49. D) $49 E) $42. F)$42 G)$44.50. H)$44.50

(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: 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 2018? \[\begin{array} { | l | l | l | l | } \hline & \text { Price in 2017 } & \text { Price in 2018 } & \text { Price in 2019 } \\ \hline \text { Peanut butter } & \$ 1.00 & \$ 1.10 & \$ 1.20 \\ \hline \text { Jelly } & \$ 2.00 & \$ 2.25 & \$ 2.50 \\ \hline \end{array}\]

A) $3.35. B) $3.35 C) $40. D) $40 E) $42 F)$42. G)$44.50. H)$44.50 A) $3.35. B) $3.35 C) $40. D) $40 E) $42 F)$42. G)$44.50. H)$44.50

(Table: Price Index) Use Table: Price Index. Which year is MOST likely to be the base year? \[\begin{array} { | l | l | } \hline \text { Year } & \text { Price Index } \\ \hline 2016 & 100 \\ \hline 2017 & 104 \\ \hline 2018 & 103 \\ \hline 2019 & 110 \\ \hline \end{array}\]

A) 2016. B) 2016 C) 2017. D) 2017 E) 2018. F)2018 G)2019. H)2019 A) 2016. B) 2016 C) 2017. D) 2017 E) 2018. F)2018 G)2019. H)2019

Exam 24: Inflation and Money

In Monaco, a market basket of goods and services cost $130 in 2017, $140 in 2018, and $160 in 2019. Based on this information, and assuming 2017 is the base year, the price index in 2019 was:

(Multiple Choice)

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Question 121

The menu costs of inflation are the:

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Question 122

Assume that the consumer price index is 124.0 for 2018 and 130.7 for 2019. What was the inflation rate between these two years?

(Multiple Choice)

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Question 123

You take out a loan of $8,000, and the bank (expecting an inflation rate of 3.5%) asks you to pay an interest rate of 8% per year. (a) Suppose that the actual inflation rate turns out to be 2.8%. Who gains and who loses? (b) Suppose that the actual inflation rate turns out to be 4.1%. Who gains and who loses?

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Question 124

Use the following consumer price index data to answer the questions. YEAR CONSUMER PRICE INDEX 2001 169.8 2002 174.6 2003 182.0 2004 180.8 2005 177.6 2006 179.1 (a) What was the inflation rate in 2003? (b) What was the inflation rate in 2005? (c) Out of the years shown in the table, which year(s) experienced deflation?

(Short Answer)

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Question 125

(Table: GDP II) Use Table: GDP II. Calculate the GDP deflator for 2019. Nominal GDP 400 500 Real GDP 360 480

(Multiple Choice)

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Question 126

Consider the following basket of goods: 50 hamburgers, 10 textbooks, eight T-shirts, and 100 bottles of water. Suppose that in 2015, each hamburger was $3.50, each textbook was $89.99, each T-shirt was $14, and each bottle of water was $1.50. In 2016, each hamburger was $3.60, each textbook was $95, each T-shirt was $13, and each bottle of water was $1.65. What was the approximate value of the basket in 2015?

(Multiple Choice)

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Question 127

The GDP deflator is an index that tracks the:

(Multiple Choice)

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Question 128

If there is deflation of 2% in the economy, your purchasing power will remain the same if your income:

(Multiple Choice)

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Question 129

You open an investment account that earns a nominal interest rate of 3.1% per year. The current consumer price index is 205. In one year, the consumer price index is expected to go to 203. What is your expected real rate of return?

(Multiple Choice)

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Question 130

Assume that the consumer price index is 103.9 for 2018 and 107.6 for 2019. What was the inflation rate between these two years?

(Multiple Choice)

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Question 131

(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 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 132

You purchase a certificate of deposit and expect an inflation rate of 1.5% over the next year. Your nominal rate of interest is 2.25%. Over the next year, the actual inflation rate turns out to be 1.75%. What is your actual real rate of return?

(Multiple Choice)

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Question 133

You purchase a certificate of deposit that earns an advertised rate of 1.75% interest per year. What is your real rate of return if the actual inflation rate is 1.9%?

(Multiple Choice)

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Question 134

When inflation is higher than expected, there is redistribution from:

(Multiple Choice)

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Question 135

(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 136

(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 2018? 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 137

Assume that the consumer price index is 72.6 for 2018 6 and 82.4 for 2019. What was the inflation rate between these two years?

(Multiple Choice)

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Question 138

(Table: Price Index) Use Table: Price Index. Which year is MOST likely to be the base year? Year Price Index 2016 100 2017 104 2018 103 2019 110

(Multiple Choice)

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Question 139

In 2014, the action movie John Wick made about $14.5 million in its opening weekend. In 2017, John Wick: Chapter 2 made about $30.5 million in its opening weekend. The consumer price index in 2014 was 236.7. If the consumer price index in 2017 was 245.1, how much did the first John Wick movie make in 2017 dollars?

(Multiple Choice)

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Question 140

Exam 24: Inflation and Money

In Monaco, a market basket of goods and services cost $130 in 2017, $140 in 2018, and $160 in 2019. Based on this information, and assuming 2017 is the base year, the price index in 2019 was:

The menu costs of inflation are the:

Assume that the consumer price index is 124.0 for 2018 and 130.7 for 2019. What was the inflation rate between these two years?

(Table: GDP II) Use Table: GDP II. Calculate the GDP deflator for 2019. Nominal GDP 400 500 Real GDP 360 480

The GDP deflator is an index that tracks the:

If there is deflation of 2% in the economy, your purchasing power will remain the same if your income:

You open an investment account that earns a nominal interest rate of 3.1% per year. The current consumer price index is 205. In one year, the consumer price index is expected to go to 203. What is your expected real rate of return?

Assume that the consumer price index is 103.9 for 2018 and 107.6 for 2019. What was the inflation rate between these two years?

You purchase a certificate of deposit and expect an inflation rate of 1.5% over the next year. Your nominal rate of interest is 2.25%. Over the next year, the actual inflation rate turns out to be 1.75%. What is your actual real rate of return?

You purchase a certificate of deposit that earns an advertised rate of 1.75% interest per year. What is your real rate of return if the actual inflation rate is 1.9%?

When inflation is higher than expected, there is redistribution from:

Assume that the consumer price index is 72.6 for 2018 6 and 82.4 for 2019. What was the inflation rate between these two years?

(Table: Price Index) Use Table: Price Index. Which year is MOST likely to be the base year? Year Price Index 2016 100 2017 104 2018 103 2019 110

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

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