Comment on the inflation picture for these years

Assignment Help Macroeconomics
Reference no: EM13319134

Suppose a consumer buys 10 units of good X and 20 units of good Y every year. The following table lists the prices of goods X and Y in the years 2005-2007. Assume that these two goods constitute the typical market basket. Calculate the price indices for these years with 2005 as the base year. Comment on the inflation picture for these years. Year Good X Good Y 2005 $3 $6 2006 4 7 2007 4.5 7.5

Reference no: EM13319134

Questions Cloud

Explain the activation energy for the reaction is very large : The result described is impossible, given the fact that delta G is -60 kJ/mol. d. The activation energy for the reaction is very large; equilibrium has not been reached by 24 hours. e. An enzyme has shifted the equilibrium toward A.
Calculate the mass of the block : A block of unknown mass is attached to a spring of spring constant 7.9 N/m and undergoes simple harmonic motion with an amplitude of 13.2 cm. Calculate the mass of the block
Determine the optimal rate of labor input : The Marginal product of labor in production process is statistically estimated as MPL=10(K/L)^0.5 Currently the process is using 100 units of K and 121 units of L
Find the amplitude of the motion : A 0.377 kg mass is attached to a spring and undergoes simple harmonic motion with a period of 0.57 s. The total energy of the system is 3 J
Comment on the inflation picture for these years : Suppose a consumer buys 10 units of good X and 20 units of good Y every year. The following table lists the prices of goods X and Y in the years 2005-2007. Assume that these two goods constitute the typical market basket. Calculate the price indices ..
Assume that a monopolist sells a product with a total cost : Assume that a monopolist sells a product with a total cost function TC=1200 + 0.5Q2 and a corresponding marginal cost function MC = Q. The market demand curve is given by the equation P = 300-Q. a. Find the profit- maximizing output and price for thi..
Obtain the velocity of the mass : A 45.3 g mass is attached to a horizontal spring with a spring constant of 14 N/m and released from rest with an amplitude of 37.2 cm. What is the velocity of the mass
Estimate the spring constant of the spring : When a mass of 25 g is attached to a certain spring, it makes 19 complete vibrations in 4.5 s. What is the spring constant of the spring
What does the civilian noninstitutional population equal : Suppose there are 60 million people employed, 10 million unemployed, and 30 million not in the labor force. what does the civilian noninstitutional population equal?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Illustrate what would happen to the price level

If the demand for money depends positively on real income and depends inversely on the nominal interest rate, illustrate what would happen to the price level today if the central bank announces.

  The present market conditions for the xerox corp

the present market conditions for the Xerox corp by addressing the price elasticity of demand for the company.

  What type of shift in the demand for fruit

Before 2005, economists estimated the cross-price elasticity between fruits and vegetables to be +1.5. Since the introduction in 2005 of the "New Food Pyramid", the revised estimate of the cross-price elasticity between fruits and vegetables is no..

  What is the equilibrium level of real gdp

What is the saving function? What is the marginal propensity to save and what is the aggregate expenditure function? What is autonomous expenditure? What is the marginal propensity to withdraw?

  Illustrate what have been the implications for the business

Illustrate what have been the implications for the business environment facing foreign investors of measures taken by the Indonesian government since the onset of the East Asian financial crisis in 1997.

  What are the betas of the two stocks

What is the expected rate of return on each stock if the market return is equally likely to be 5% or 20%? c. If the T-bill rate is 8%, and the market return is equally likely to be 5% or 20%, draw the SML for this economy. d. Plot the two securitie..

  What is the effective annual interest rate for payment plan

A rural stretch of a two lane road in Loudoun County is to be refurbished or a new route established. The existing road, E, will cost $3,000,000 and the new route, N, will cost $5,000,000. Annual O&M costs will be $120,000 for E and $90,000 for N...

  Economic statements related to market structure and pricing

True/False: For each of the following concepts, decide whether it's true or false, and briefly explain why (2-3 sentences).  You can also use diagrams if they are helpful. Each correct answer is worth.

  Calculate the size of the endowment that will be required

The firm wants to provide a semiannual award of $4500. The foundation will deposi the company's endowment in a fund that pays 3.75% compounded semiannually. The first aware will be made in 14 months. Calculate the size of the endowment that will be..

  Impact of ban on credit cards on money supply

Credit cards are sometimes discussed as a public problem. In 2001, purchases on credit cards accounted for 21% of consumer spending in America, which has the lowest savings rate of any big country.

  What should be the current rate for a two-year treasury

The current one-year Treasury bill rate is 5.2 percent, and the expected one year rate 12 months from now is 5.8 percent. According to the unbiased expectations theory

  What mutually exclusive project combinations are available

only one tester may be bought and the press will not need overhauling if the line improvements are not made. what mutually exclusive project combinations are available if Angus Auto will invest in at least one

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd