ECON102 Study Guide - Consumer Spending, Real Interest Rate, Nominal Interest Rate

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8 Oct 2014

School

University of Waterloo

Department

Economics

Course

ECON102

Professor

Richard Ennis

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ECON102 Full Course Notes

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per bushel: refer to table 6-1. What is the consumer price index for 2010: 100, 160, 200, there is insufficient information to answer this question. Suppose that the typical consumer basket consists of 5 bushels of peaches and 10 bushels of pecans and that the base year is 2010. What is the consumer price index for 2011: 80, 100, 125, 200, refer to table 6-1. What was the inflation rate in 2011: 25 percent, 20 percent, 5 percent, 4 percent. The table below pertains to an economy with only two goods books and calculators. The fixed basket consists of 5 books and 10 calculators. The price index for 1931 is 15. 2 and the price index for 2010 is 195. What would ruth"s 1931 salary be equivalent to in 2010: 000, 000, 000, 026 000. Suppose that the cpi is currently 400 and was 100 in 1969.

Related Questions

The Bureau of Labor Statistics uses consumer price index to

a. monitor changes in the level of wholesale prices in the US economy.

b. monitor changes in the cost of living of people in the US over time.

c. monitor changes in the level of real GDP in the US over a period of time.

d. monitor changes in the American stock market.

If an economy experiences deflation, then

A. the overall price level is rising but not as quickly as it did in the previous year.

B. the prices of consumer goods are decreasing while the prices of raw materials are increasing.

C. the overall price level is declining.

D. the overall price level is increasing.

E. the prices of all goods in the economy are decreasing.

marooncrab607

1. The peak of the business cycle

a. usually occurs when the natural rate of unemployment is equal to its actual rate.

b. is the point where an expansion ends and a recession begins

c. is the minimum level of nominal GDP.

2. The consumer price index (CPI) reflects

a. the median annual expenditures of a typical single family of four on consumer goods

b. the average price of all goods and services computed from the ratio of nominal GDP to real GDP.

c. the changes in the prices of goods and services typically purchased by consumers.

3. The Consumer Price Index is NOT used

a. to measure the average price level of all final goods and services produced

b. to compute the U.S. inflation rate.

c. to measure changes in the cost of living

4. Which of the following is true of a price index that uses a fixed market basket?

a. It excludes new goods and services

b. It accurately predicts the impact of rising prices when purchases are made at superstores.

c. It overstates the importance of items that fall in price.

5. A quality-change bias in the construction of the CPI arises because

a. big box stores that carry electronic goods routinely run sales to reduce their inventories before stocking new models.

b. consumers also shop at superstores or outlet stores

c. newer versions of a product might be more expensive but could also be better than the older version.

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ECON102 Study Guide - Consumer Spending, Real Interest Rate, Nominal Interest Rate

ECON102 Full Course Notes

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