year with the price of the same bundle of goods in some base year.Suppose the market basket to compute the consumer price index consists of 150 units of good X, 300 units ofY, and 50 units of good Z. Year 2013 is the base year. Prices of these goods for the years 2013, 2014, and 201are given below.Amount inMarket Basket Prices inPrices inPrices inGood201320142015X150$2.50$4.00$4.50YZ300502.503.503.504.004.324.20Using the information above, calculate the following:The cost of the market basket in 2013 is $375. (Round your response to two decimal places.)The cost of the market basket in 2014 is $ 1050. (Round your response to two decimal places.)The cost of the market basket in 2015 is $210. (Round your response to two decimal places.)Calculate the CPI for each year. (Round your responses to two decimal places.).CPI in 2013CPI in 2014CPI in 2015The rate of inflation between 2013 and 2014 isThe rate of inflation between 2014 and 2015 is%. (Round your response to two decimal places.)%. (Round your response to two decimal places.)

To calculate the CPI for each year, we first need to calculate the cost of the market basket for…

Answered: year with the price of the same bundle…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 4.8P

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The table below details Student A's monthly purchases during 2019 and 2020. Answer the following questions writing out dollars and cents for monetary values e.g. $1.00, item weights to two decimal places e.g. 0.10, price index values as whole numbers without decimals, e.g. 110, and percentages to one decimal place e.g. 1.0%. Hotdogs Cans of Cola Chocolate bars Magazines Movies Prices ($) 2019 2.70 1.30 1.00 6.50 6.00 2020 2.80 1.25 1.00 7.50 5.75 Quantities (# consumed per month) 2020 With 2019 as the base year this index has changed by 2019 2 16 7 3 2 1 18 7 a. The value of Student A's 2019 shopping basket using 2019 prices is $ The item weights associated with this shopping basket are for magazines, and for movies. b. The value of Student A's 2019 shopping basket using 2020 prices is $ If 2019 is used as the base year, the 2020 value of Student A's price index is 2 3 for hotdogs, for cola, for chocolate bars, and the 2019 value of this index is then % between 2019 and 2020.
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