A) a process of adjusting the nominal interest rate so that it is equal to the real interest rate. B) using a law or contract to automatically correct a dollar amount for the effects of inflation. C) using a price index to deflate dollar values. D) an adjustment made by the Bureau of Labor Statistics to the CPI so that the index is in line with the GDP deflator. A) a process of adjusting the nominal interest rate so that it is equal to the real interest rate. B) using a law or contract to automatically correct a dollar amount for the effects of inflation. C) using a price index to deflate dollar values. D) an adjustment made by the Bureau of Labor Statistics to the CPI so that the index is in line with the GDP deflator.

Exam 11: Measuring the Cost of Living: Correcting Economic Variables for the Effects of Inflation

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If the nominal interest rate is 6 percent and the rate of inflation is 10 percent,then the real interest rate is

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Question 81

The nominal interest rate tells you

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Question 82

During a certain year,the consumer price index increased from 120 to 132 and the purchasing power of a person's bank account increased by 4 percent.For that year,

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Question 83

Ms.Lane borrowed $1,000 from her bank for one year at an interest rate of 10 percent.During that year,the price level went up by 15 percent.Which of the following statements is correct?

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Question 84

Which of the following statements about real and nominal interest rates is correct?

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Question 85

A worker received $5 for a daily wage in 1930,which has the equivalent value of $63.24 today.If the CPI was 17 in 1930 what is the value of the CPI today,rounded to the nearest whole number?

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Question 86

Arlo is offered a job in Des Moines,where the CPI is 80,and a job in New York,where the CPI is 125.Arlo's job offer in Des Moines is for $42,000.How much does the New York job have to pay in order for the two salaries to represent the same purchasing power?

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Question 87

Nate collected Social Security payments of $220 a month in 1985.If the price index rose from 90 to 108 between 1985 and 1986,then his Social Security payments for 1986 should have been

(Multiple Choice)

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Question 88

Indexation refers to

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Question 89

Scenario 24-3 Sue Holloway was an accountant in 1944 and earned $12,000 that year.Her son,Josh Holloway,is an accountant today and he earned $210,000 in 2013.The price index was 17.6 in 1944 and 218.4 in 2013. -Refer to Scenario 24-3.Josh Holloway's 2013 income in 1944 dollars is

(Multiple Choice)

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Question 90

Social Security payments are indexed for inflation using the CPI.A recent newspaper editorial claimed that Social Security recipients are harmed by years of low inflation because they do not receive as large an increase in their payments as they do in years of high inflation.Which of the following statements is correct?

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Question 91

The CPI was 172 in 2007,and the CPI was 46.5 in 1982.If your parents put aside $1,000 for you in 1982,then how much would you have needed in 2007 in order to buy what you could have bought with the $1,000 in 1982?

(Multiple Choice)

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Question 92

Social Security payments are indexed for inflation using

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Question 93

If the CPI was 68 in 1965 and is 285 today,then $100 today purchases the same amount of goods and services as

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Question 94

Suppose in the year 2000 Ken earned $60,000 per year and that in 2015 he earned $78,000 per year.If the CPI in the year 2000 was 172.2 and in 2015 was 236.7,which of the following statements is correct?

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Question 95

When looking at a graph of nominal and real interest rates you notice the graph for nominal rates and the graph for real rates cross each other many times.From this you conclude

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Question 96

You know that a candy bar costs sixty cents today.You also know the CPI for 1962 and the CPI for today.Which of the following would you use to compute the price of the candy bar in 1962 prices?

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Question 97

If the nominal interest rate is 6 percent and the rate of inflation is 2 percent,then the real interest rate is

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Question 98

Harry spent $39,000 in 2009 and $42,000 in 2014 on goods and services.The consumer price index was 220 for 2009 and 231 for 2014.Harry's 2014 spending in 2009 dollars is about

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Question 99

A COLA automatically raises the wage when

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Question 100

Showing 81 - 100 of 124

Exam 11: Measuring the Cost of Living: Correcting Economic Variables for the Effects of Inflation

If the nominal interest rate is 6 percent and the rate of inflation is 10 percent,then the real interest rate is

The nominal interest rate tells you

During a certain year,the consumer price index increased from 120 to 132 and the purchasing power of a person's bank account increased by 4 percent.For that year,

Ms.Lane borrowed $1,000 from her bank for one year at an interest rate of 10 percent.During that year,the price level went up by 15 percent.Which of the following statements is correct?

Which of the following statements about real and nominal interest rates is correct?

A worker received $5 for a daily wage in 1930,which has the equivalent value of $63.24 today.If the CPI was 17 in 1930 what is the value of the CPI today,rounded to the nearest whole number?

Arlo is offered a job in Des Moines,where the CPI is 80,and a job in New York,where the CPI is 125.Arlo's job offer in Des Moines is for $42,000.How much does the New York job have to pay in order for the two salaries to represent the same purchasing power?

Nate collected Social Security payments of $220 a month in 1985.If the price index rose from 90 to 108 between 1985 and 1986,then his Social Security payments for 1986 should have been

Indexation refers to

Scenario 24-3 Sue Holloway was an accountant in 1944 and earned $12,000 that year.Her son,Josh Holloway,is an accountant today and he earned $210,000 in 2013.The price index was 17.6 in 1944 and 218.4 in 2013. -Refer to Scenario 24-3.Josh Holloway's 2013 income in 1944 dollars is

The CPI was 172 in 2007,and the CPI was 46.5 in 1982.If your parents put aside $1,000 for you in 1982,then how much would you have needed in 2007 in order to buy what you could have bought with the $1,000 in 1982?

Social Security payments are indexed for inflation using

If the CPI was 68 in 1965 and is 285 today,then $100 today purchases the same amount of goods and services as

Suppose in the year 2000 Ken earned $60,000 per year and that in 2015 he earned $78,000 per year.If the CPI in the year 2000 was 172.2 and in 2015 was 236.7,which of the following statements is correct?

When looking at a graph of nominal and real interest rates you notice the graph for nominal rates and the graph for real rates cross each other many times.From this you conclude

You know that a candy bar costs sixty cents today.You also know the CPI for 1962 and the CPI for today.Which of the following would you use to compute the price of the candy bar in 1962 prices?

If the nominal interest rate is 6 percent and the rate of inflation is 2 percent,then the real interest rate is

Harry spent $39,000 in 2009 and $42,000 in 2014 on goods and services.The consumer price index was 220 for 2009 and 231 for 2014.Harry's 2014 spending in 2009 dollars is about

A COLA automatically raises the wage when

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A