What was the absolute amount of increase in real income

Assignment Help Business Economics
Reference no: EM13148810

Assume that nominal income is $35,000 and the price index is 1.20 in year 1. In year 2, nominal income rises to $38,000 and the price index rises to 1.25. What was the percentage change in real income from year 1 to year 2? What was the absolute amount of increase in real income? - Make your calculations of the percentage change in real income and the absolute change in real income using the approximation formula and using the more precise method with index numbers.

Reference no: EM13148810

Questions Cloud

Explain a sample of concrete contains cement : A sample of concrete contains cement, gravel, crushed rocks, sand, and water. Each of these contains different metals and minerals and hence has different colors and different properties. Which term or terms could be used to describe this sample o..
Peyton report as capitalized interest : Peyton's incremental borrowing rate was 12 percent throughout 2011, and the total amount of interest incurred by Peyton during 2011 was $204,000. What amount should Peyton report as capitalized interest at December 31, 2011?. $480,000
Who gains from unexpectedly low inflation : If inflation turns out to be 1% over the life of the loan, what is the real interest rate? Who gains from unexpectedly low inflation, Loretta or Ted?
What is the predicted recombination frequency : Which tetrad type numbers in the progeny should be compared to determine if genes in Neurospora are linked? Explain why.
What was the absolute amount of increase in real income : What was the absolute amount of increase in real income? - Make your calculations of the percentage change in real income and the absolute change in real income using the approximation formula and using the more precise method with index numbers.
What percentile did you score in : the top ten percentile cutoff was 95 points. a. What is the standard deviation for the class? b. What percentile did you score in?
Estimate the proportion of costs using empirical rule : Use the Empirical Rule to estimate the proportion of costs within two standard deviations of the mean. What are these limits?
What is the significance of the first and last codons : Transcribe and translate EACH of the three following DNA gene sequences. Turn these in using the graphic organizer. The letters represent the DNA N-base sequences of the genes.
Derive the general expression for the work per kilomole : Derive the general expression for the work per kilomole of a van der waals gas in expanding reversibly and at a constant temperature

Reviews

Write a Review

Business Economics Questions & Answers

  Explain investment always equals savings in closed economy

According to national income accounts, investment always equals savings in a closed economy. only in equlibrium would savings be equal to investment. hence, we are always in equlibrium. true or false.

  Compute the herfindahl-hirschman index

An industry consists of three firms with sales of $200,000, $500,000, and $400,000. Compute the Herfindahl-Hirschman index.

  Equity consulting firm did a job evaluation

Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female-dominated jobs.

  Illustrate what is the opportunity cost of a defense buildup

Illustrate what is the opportunity cost (in civilian output) of a defense buildup that raises military spending from 4.0 to 4.1 percent of a $14 trillion economy.

  Example of multiple equilibria in the labour market

Elucidate using the example of multiple equilibria in the labour market. Illustrate diagrammatically

  Private sector has rational expectations

Assume that the central bank takes the drastic strategy in part 1, but that the private sector has rational expectations.

  Licorice industry is competitive

The licorice industry is competitive. Each firm produes 2 million strings of licorice every year. Total cost of strings have an average.

  How would that fact affect contribute to the argument

Suppose the average annual temperature in the state of New York were to decline for three years in a row. How would that fact affect/contribute to the argument as to whether global warming is occurring and whether we should do something about it?

  What is labour productivity

Why are you taking this class. Explain. Did you read and understand syllabus requirements for this class. What is labour productivity.

  Describe the four successful round of venture financing

Describe the four successful round of venture financing (Through D) achieved by spatial Technology in terms of sources also amounts.

  Elucidate what would the seller cost of capital

Elucidate what would the seller's cost of capital have to be in order for the discount to be cost justified.

  Advertising is higher than usual also the consumer price

Help wanted advertising is higher than usual also the consumer price index is up more than expected.Inflation has slowed markedly also the Dow Jones average is at record levels.

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