Assuming that 2001 is the base year, calculate the price index for 2002.
Commodity
Market Basket Quantity
2001 Price
2002 Price
Wheat
40lbs
$4.00
$4.47
Cherries
35lbs
$5.00
$5.50
A. In 2002, the price index is _________. (Round your answer to two decimal places).
B. The inflation rate between 2001 and 2002 is ___________% (Round your answer to two decimal places).
Assuming that 2001 is the base year, calculate the price index for 2002.
| Commodity | Market Basket Quantity | 2001 Price | 2002 Price |
| Wheat | 40lbs | $4.00 | $4.47 |
| Cherries | 35lbs | $5.00 | $5.50 |
A. In 2002, the price index is _________. (Round your answer to two decimal places).
B. The inflation rate between 2001 and 2002 is ___________% (Round your answer to two decimal places).
Related textbook solutions
Related questions
A. Fill in the rest of the table. That is, calculate the national debt each year, and also calculate the real deficit (or surplus) for each year (round to two decimal places)
B. In real terms, is the $5 billion deficit in 200 larger or smaller than the $6 billion deficit in 2004?
|
Year |
National Deficit |
National Debt |
Price Level |
Real Deficit |
|
1999 |
------- |
$20 billion |
------ |
------- |
|
2000 |
$5 billion (deficit) |
100 |
||
|
2001 |
1 billion (surplus) |
101 |
||
|
2002 |
4 billion (deficit) |
105 |
||
|
2003 |
8 billion (deficit) |
107 |
||
|
2004 |
6 billion (deficit) |
110 |
|
Base Year (2006) 2013 |
|||
|
Product |
Quantity |
Price |
Price |
|
Cokes |
100 |
$0.50 |
$0.75 |
|
Hamburgers |
200 |
2.00 |
2.50 |
|
CDs |
10 |
20.00 |
21.00 |
1) Refer to the table above. Assume the market basket for the consumer price index has three products: Cokes, hamburgers, and CDs.
The consumer price index for 2013 equals ______.
|
Product |
Quantity |
Base Year Price (2001) |
Price (2012) |
Price (2013) |
|
Burritos |
10 |
$1.00 |
$1.50 |
$1.75 |
|
Flashlights |
15 |
5.00 |
7.00 |
6.75 |
|
Golf balls |
8 |
2.00 |
3.00 |
3.50 |
2) Refer to the table above. Consider a simple economy that produces only three products: burritos, flashlights, and golf balls. Use the information in the table to calculate the inflation rate for 2013 (vs. 2012), as measured by the consumer price index.
|
Year |
Nominal Average Hourly Earnings |
CPI |
|
2011 |
$10 |
100 |
|
2012 |
10 |
105 |
|
2013 |
12 |
110 |
3) Refer to the table above. Real average hourly earnings were equal to ________ in 2012.
4) Looking at the table above, real average hourly earnings between 2012 and 2013 changed by ______%.
5) Matt's real wage in 2014 is $26.80. If the price level is 104, what is Matt's nominal wage?
