8. The price of oil in 2005 was 5067 per barrel. "This price is still lower than the price of oil in 1991" says a government publication. If inflation has averaged 3.2% per year from 1991 to 2020, what was the price per barrel of oil in 1991?

8. The price of oil in 2005 was 5067 per barrel. "This price is still lower than the price of oil in 1991" says a government publication. If inflation has averaged 3.2% per year from 1991 to 2020, what was the price per barrel of oil in 1991?

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter17: Inflation

Section: Chapter Questions

Problem 5SQ

See similar textbooks

Related questions

Q: Explain 1 remedy for inflation in the country Saint Lucia.

A: Inflation can be controlled by the country of Lucia by : Controling the money supply – Monetarists…

Q: 4. The following table shows the UK consumer prices index for the years 2013-16 based on 2014=100.…

A: Here, CPI of different years are given with 2014 as base year.

Q: Suppose your scholarship was increased by 5% and inflation this year is 7.5%, what is the interest…

A: We know: Real Interest rate = Nominal Interest Rate - Inflation Here the nominal interest rate is 5%…

Q: The price of an item in 2004 was $1.3. Use an inflation rate of 4% to calculate its price in 2030.…

A: Meaning of Inflation: The term inflation refers to the situation under which there is an excessive…

Q: Inflation is a general increase in prices and may be measured by the Consumer Price Index (CPI). Use…

A: As per guidelines, we will answer the first question. If you want any specific question to be…

Q: The consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of…

A: Rs. 100 (X) Rs. 150 Y Rs. 25 (Z) 2018 10 10.50 30 2019 10.50 20…

Q: 4. The following table shows the UK consumer prices index for the years 2013-16 based on 2014=100.…

A: Macroeconomics is a sub-part of economics that is used to understand, the policies and fiscal…

Q: 4. If a gallon of gas cost $1.20 in 1997 and $2.20 in 2006, did it match, exceed, or was it less…

A: Inflation is the decline in the prices of commodities over time that produces in an economy.

Q: In 1995, when the consumer price index was 152.38, women earned a median income of $12,130 per year.…

A: Given - Consumer Price Index in 2015 = 236.99, Consumer Price Index in 1995 = 152.38, Median Income…

Q: 1. What is likely to cause inflation? a. increase in oil prices b. Increase of prices of computers…

A: Government has certain tax revenue with them through which they have to carry developmental expenses…

Q: Consumption basket consumed by an average consumer and the price level of each good in the basket…

A: Consumer price index(CPI): - it is a measure of change in the price level, it measures the change in…

Q: At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is…

A: CPI is measured using fixed basket of goods

Q: The rate of inflation in Zimbabwe rose in 2018 from 10.6% to 577.21% in 2020. What was the positive…

A: Inflation shows the increase in price level of goods and services in an economy. When price level…

Q: 26. Suppose the same consumer market basket that cost $20 on January 1, 1990, costs $40 on Dec 31,…

A: Given: The cost of a consumer market basket on January 1, 1990, is = $20 The cost of a consumer…

Q: The price of oil in 2005 was $3,350 per barrel. “This price is still lower than the price of oil in…

A: Inflation rate tells us about the change in prices over a time period. For example , an inflation…

Q: f inflation is 4 percent per year and you receive a 3 percent raise in income, t

A: Inflation 4% Income rises by 3%

Q: The government has released the latest retail price index which suggests inflation was 1.62%. A…

A: As measured by the consumer price index (CPI), the change in the price of a basket of goods and…

Q: The US record-high gas prices previously occurred in July 2008, when the national average price per…

A: 1. Given the CPI of 2008 = 219.964 Current CPI = 283.716 Inflation = Current CPI - Previous…

Q: The price of oil in 2005 was $67 per barrel. “This price is still lower than the price of oil in…

A: Inflation: It refers to the increase in the prices of the products in an economy due to which the…

Q: Economics In year 1 the CPI is 181, and in year 2 the CPI is 195. If Dennis's salary was…

A: inflation is typically a broad measure, such as the overall increase in prices or the increase in…

Q: Describe the relationship between inflation levels in prices and inflation levels for wages and…

A: Interest rates and the rate of inflation generally tends to have an inverse relationship.

Q: thank you very much

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: 5- Consumption basket consumed by an average consumer and the price level of each good in the basket…

A: a) CPI for 2012=Quantity of coffee*Price of coffee(2012)+Quantity of tea*Price of tea(2012)+Quantity…

Q: YEAR Consumer Price Index 2017 100 2018 110 2019 121 According to the table above, Inflation rate in…

A: The consumer price index of different periods helps to determine the inflation rate in a specific…

Q: Over a long period of time, the price of a kebab rose from £5.00 to £7.50. Over the same period,…

A: Price increase from £5 to £7.5 Consumer price increase from 150 to 300

Q: The table below pertains to Studious, an economy in which the typical consumer’s basket consists of…

A: According to the question given, the market data of the economy which have a typical consumer basket…

Q: 1. 2. The table below shows the price of the basket of goods and services for each of the following…

A: The Consumer Price Index measures the overall change in consumer prices over time based on a…

Q: Calculate the Inflation rate using the information given: Consumer spend $2000 on food, $2000 on…

A: Hi student, thanks for posting the question. As per the guideline we are providing answer for the…

Q: The rate of inflation in Zimbabwe rose in 2018 from 10.6% to 577.21% in 2020. What was the positive…

A: Inflation is described as the increase in the price level of the goods and services in the economy.…

Q: Over a long period of time, the price of a candy bar rose from $0.20 to $1.20. Over the same period,…

A: Inflation is the amount by which the average price rises over time. It is main parameter to gauge…

Q: The Consumer Price Index (CPI) is a measure of inflation obtained by comparing current prices with…

A: Given: To Find: The CPI for the item in 2000:

Q: In 2000, the federal minimum hourly wage was $5.15. 2000 CPI=172.2 2016 CPI=240.0 (a) Find the…

A: The consumer price index (CPI) determines the change in the overall market prices of a basket of…

Q: 5. The country with the consistently lowest inflation rate over 1980-2010 is a) Japan b) Germany c)…

A: Inflation rate : the rate at which prices increase over time, resulting in a fall in the purchasing…

Q: As an Economic Professional how can you define the following: 1. Production 2. Inflation

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: In 1984 Michael Jordan got a contract with Nike that was worth $500,000 a year, for the next 5 years…

A: The real value can be calculated by using the following formula. Substitute the respective value in…

Q: Question 2. a) Calculate the CPI of 2009. b) Calculate the inflation rate of 2009. c) If your salary…

A: CPI is an index that measures inflation by analysing changes in prices of goods & services that…

Q: average price per gallon was $4.16. This week, US gas prices reached $4.19, a new record high…

A: Given information: Average price of gas in 2008: $4.16 New record high nominal price: $4.19 CPI in…

Q: A country’s real GDP rose from $500 to $530 while its nominal GDP rose from $600 to $700. What was…

A: We can calculate the GDP deflator using the following equation.

Q: Table 24-3 The table below lists the per pound prices of meat and potatoes for the months of…

A: Given: Quantity of meat=25 pounds Quantity of potatoes=15 pounds Base month=January

Q: 3a. Suppose that the consumer price index was 100 on January 1st, 2000 and 110 on January 1st, 2001.…

A: Consumer Price Index is the tool which measure the Inflation at consumer level , so here we…

Q: The rate of inflation for 2016 was 1.3%. Did the price of Seattle Seahawks tickets exceed the…

A: Inflation refers to the change in general price level. To maintain a steady growth rate it is…

Q: (i)Given that 2019 is the base year, calculate the CPI for 2020 and determine the inflation rate…

A: The inflation rate is the rate of increase or the rate of increase in the normal price of selected…

Q: Over a long period of time the price of a candy bar rose from $.20 to $1.20 over the same period the…

A: The following information has been given Over a long period of time, the price of a candy bar…

Question

8. The price of oil in 2005 was 5067 per barrel. "This price is still lower than the
price of oil in 1991" says a government publication. If inflation has averaged
3.2% per year from 1991 to 2020, what was the price per barrel of oil in
1991?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Table 22.4 shows the fruit prices that the typing college student purchased from 2001 to 2004. What is the amount spent each year on the basket of fruit with the quantities shown in column 2?
The price of oil in 2005 was $3,350 per barrel. “This price is still lower than theprice of oil in 1981” says a government publication. If inﬂation has averaged 3.2% per year from 1981 to 2005, what was the price per barrel of oil in 1981?
How can we easily calculate the price index (or inflation rate) of gasoline?
1) Over the last 10 years, the average rate of inflation has been 1.61%. what is the purchasing power of a dollar today in terms of what a dollar could purchase in 2008? 2) In 1970 tuition cost $1990. Today (2018) the cost is $64,890. Has the cost risen faster or slower than the rate of inflation of 3.87%? 3) Tuition at XYZ this year cost $61,170. If the inflation rate is 2% for the foreseeable future and if the cost of attending XYZ rises at the rate of inflation, what will it cost in 20 years to attend XYZ for 1 year? For 4 years (2038-2042)?
In 2021, the Woodland Republic Bureau of Statistics publication indicated thatthe Consumer Price Index (CPI) of the country increased to 109.2 in 2021 from 106.5 in 2020. Calculate Woodland Republic’s inflation rate in 2021.
For the 1974-1975 academnic year, the annual tuition of Memphis was S1,500. The current tuition of Memphis is nearly $30,000 for the 2016-2017 academic year. Compute the average inflation rate in Memphis tuition to two decimal places over the years from 1974 to 2016.
Hello, how do I calculate the yearly inflation rate when given the monthly cpi for each basket of goods the economy produces.
Consider the simple economy that produces only three products. Use the information in the folldwing table to calculate the (annual rate of) inflation for 2020 as measured by the consumer price index (CP). BASE YEAR (2010) 2019 2020 Product Haircuts Quantity Price Price Price $10.00 $1.00 $16.20 Hamburgers 2.00 2.45 2.40 Movies 15.00 15.00 14.00 Using the information in the tabie, the CPI for 2019, with 2010 as the base year, is (Enter your response rounded to ane decimal place The inflation rate for 2020 as measured by the consumer price index (CPI) is%. (Enter your response rounded to two decimal places)
In Zimbabwe the rate of inflation hit 90 sextillion percent in 2009, with prices increasing tenfold every day. At that rate, how much would a $100 textbook cost one week later? Hint: Use the following equation to calculate future price: Future price = (current price) x (inflation rate)', where t is the number of days in the future. billion
4. Good X Y Z Quantity 10 20 5 Price in 1999 $5 $10 $6 Price in 2000 $6 $10 $10 Assume year 2000 is the base year. a) Calculate the market basket value for each year. What is the consumer price index in 1999? b) What is the inflation rate between 1999 and 2000?
Cindy is pumping gasoline at ExxonMobil and saw that the price is $3.59 per gallon. She is curious to see if she is overpaying or underpaying today. Gasoline prices in the 1980s were $1.03 per gallon. How much should a gallon of gasoline be today? inflation rate from 1980
If we know the CPI values for two consecutive years, how can we calculate the annual general inflation rate?