Quiz: Chapter 16 Quiz This Question: 1 pt 10 of 10 (9 complete) This Quiz: The t
ID: 1110943 • Letter: Q
Question
Quiz: Chapter 16 Quiz This Question: 1 pt 10 of 10 (9 complete) This Quiz: The table shows the quantities in the CPl basket and the prices in 2014, 2015, and 2016 2014 Price Bread 2 loaves $0.50 $0.75 $0.75 The base year is 2014 2015 Price 2016 Price ltem Quantity The cost of the CPl basket in 2015 prices is 15.5 and the cost of the CPl basket in 2016 prices is $ 12.75 >Answer to 2 decimal places. a loaf $1.00 a carton a loaf $0.75 a carton a loaf Milk 5 cartons 0.75 a carton Movie 3 rentals $2.00 $3.00 $2.50 each The CPI in 2015 is 144.2 and the CPI in 2016 is 118.6 >Answer to 1 decimal place. rentals cach cach The inflation rate in 2016 is 17.8 percent. >Answer to 1 decimal place. >If your answer is negative, include a minus sign. If your answer is positive, do not include a plus signExplanation / Answer
1. Nominal wage rate = Real wage rate x CPI = 13 x 114 = $ 1482
2. B) on the average, the price paid by urban consumers for a fixed basket of consumer goods and services rises by 5 percent.
% increase in CPI = (126 - 120)/120 x 100 = 6/120 x 100 = 5%
3. D) urban households, the Consumer Expenditure survey is used to update it frequently.
7. GDP price index = Nominal GDP / Real GDP x 100 = 14719 billion / 14304 billion x 100 = 102.90
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