What was the inflation rate for this economy

Assignment Help Business Economics
Reference no: EM131110113

The price of beer rose by 6%, the price of pizza rose by 2.7% and the price of chocolate did not rise at all. Also, suppose that beer presents 8 percent of the economy and pizza represent 31 percent. Chocolate is the rest of the economy. What was the inflation rate for this economy?

Reference no: EM131110113

Questions Cloud

What is the theoretical basis for the accounting : What expenses related to this lease will Evans incur during the first year of the lease, and how will they be determined?
Price index uses the old quantities for the weights : The Laspeyres price index uses the old quantities for the weights. In the base year, good 1 cost $2 and good 2 cost $1. The current price of good 1 is $7 and the current price of good 2 is $2. In the base year, the consumption bundle was (x1b,x2b) = ..
Pick product for one of the three distribution strategies : Pick a product for one of the three distribution strategies (intensive, selective, or exclusive). Note your product and the distribution strategy, and then discuss why you feel the distribution strategy is most appropriate for that product based on t..
Who was the primary loser from this tariff : In 2009, the United States imposed a tariff of 35% on radial car tire imports from China. The tariff caused imports of these tires to drop from 13 million tires to less than 6 million tires in one quarter, and the average price of these tires to incr..
What was the inflation rate for this economy : The price of beer rose by 6%, the price of pizza rose by 2.7% and the price of chocolate did not rise at all. Also, suppose that beer presents 8 percent of the economy and pizza represent 31 percent. Chocolate is the rest of the economy. What was the..
How should a less or measure its initial gross investment : How should a less or measure its initial gross investment in either a sales-type lease or a direct-financing lease?
Inflation free rate-inflation rate-inflation free rate : An automobile is purchased in 2016 with $25,000, which is supposed to bring $5,000/year to buyer for the next 5 year. Salvage value of this product is $3,000 at the end of five years useful life.  Why in case of BTCF: Market rate = (Inflation free ra..
Direct investment-national debt-exchange rates : Minimum areas to discuss includes: the GDP, GDP by Sector, GDP per capita, employment by sector, major industries, unemployment, labor force by age, education, governmental structure and money system, trade, foreign direct investment, national debt, ..
What information should a lessee disclose about its capital : What information should a lessee disclose about its capital leases in its financial statements and footnotes?

Reviews

Write a Review

Business Economics Questions & Answers

  What is the price of this coupon bond

A 20 year coupon bond with face value $100,000 and a 4% coupon rate has a yield to maturity i = 0.08. What is the value of the annual coupon payment? What is the price of this coupon bond?

  Illustrate what is the euro-denominated return on dutch

Illustrate what is the euro-denominated return on Dutch deposits for this investor. What is the (riskless) euro-denominated return on British deposits for this investor using forward cover.

  Explain why net exports and net capital outflow are equal

Explain why net exports and net capital outflow are always equal. Explain why higher real interest rates lead to lower net capital outflow.

  Requires a lot of time series observations

The major disadvantages of using ARIMA to derive a forecast include, Requires a lot of time series observations

  Events occur in the domestic car market

Which curve shifts, and in what direction, when the following events occur in the domestic car market? a) The U.S. economy falls into a recession. b) U.S. auto workers go on strike. c) Imported cars become more expensive. d) The price of gasoline inc..

  What will carmens optimal consumption bundle

Carmen's preferences are such that she is always indifferent between watching two movies or seeing one basketball game. Suppose that Carmen has an income of $90. If a movie costs $10, and a basketball game costs $18, what will Carmen's optimal consum..

  Graph the elasticity of supply electricity

In a perfectly competitive market for electricity, suppose the total cost (in dollars) of generating electricity is given by C(Q)= Q2+100Q, where Q is the unit of electricity produced. Derive the supply of electricity in this market. Graph the elasti..

  Two brokers at morgan stanley

Two brokers at Morgan Stanley: Bob and Simon are comparing their performance last year. Bob averaged a 19% rate of return on his portfolio, while Simon averaged a 16% rate of return. The beta for Bob’s portfolio is 1.5 while the beta for Simon’s port..

  Compute price elasticity of demand using midpoint formula

Review of elasticity. Suppose that when the price of gasoline changes from $2 to $1.50, the quantity demanded of gasoline decreases in Manhattan from 800 gallons per day to 960 gallons. Compute the price elasticity of demand using the midpoint formul..

  Determine the socially efficient price and output

The Keynesians claim interest rates guarantee that savings will equal intended investment. The Keynesians claim that wages and prices are “downward sticky”. In the Keynesian model the velocity of money moves against GDP. Determine the socially effici..

  Define cardinal and ordinal utility

Define cardinal and ordinal utility. What is the difference between the two? In economics, is utility measured cardinally or ordinally and why is this so?

  Discuss what the part of the model of the market

Your first paragraph should discuss what the part of the model of the market gave you the biggest fits (but it cannot be "everything"). In this paragraph, include specifics about what it is that you don't understand as well as you would like. 2. In t..

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