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- According to Table 19.7, how often have recessions occurred since the end of World War II (1945)?Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of 20,000. However, if the inflation rate is 6 per year, how much buying power will that 20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.Compute the inflation rate for fruit prices from 2001 to 2004.
- The index number representing the price level changes from 110 to 115 in one year and then from 115 to 120 the next year. Since the index number increases by five each year, is five inflation rate each year? Is the inflation rate the same each year? Explain your answer.The data below are from the economies of Ishgandar and Nonburmia. Please help with question d. Question c included for context. Ishgandar Nonburmia Year Population GDP Deflator Nominal GDP Year Population GDP Deflator Nominal GDP 1 5 100 $200 1 10 100 $300 2 5 125 $375 2 10 110 $440 (c) Calculate each of the following in Year 2. Show your work. (i) The inflation rate in Ishgandar (ii) The inflation rate in Nonburmia (d) Based on your answer to part (c), if the nominal interest rate is the same for both economies in Year 2, which economy experiences the higher real interest rate in Year 2 ? Explain.b. What is the CPI inflation rate from 2020 – 2021 and 2021 - 2022? What does itmean?
- 2019 2020Commodities Price Quantity Price QuantityA 3 30 5 25B 4 20 5 30C 20 18 25 25a) Using the data given above, compute the Nominal and Real GDP for 2019, and 2020. (The base year is 2019). b) Compute the inflation rate for the year 2020 by using the GDP deflator.22. What is the rate of Inflation in 2016 if the consumer Price Index (CPI) at the end of 2015 was 175 and CPI at the end of 2016 was 184? a.9.2% b.5.14% c.6.5% d.4.5%In year 3, the GDP deflator is 136. The inflation rate between year 2 and year 3 is Quantity Quantity Product Price (Year 1) Price (Year 2) (Year 1) (Year 2) Cars 50 25 100 30 Homes 10 50 15 60 Cheeseburgers 100 5 150 Cheese 50 2 75 3 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 18.0% b 15.0% C 13.3% d 28.84%
- b. Calculate the inflation rate for Minnesota between 2021 and 2022. California Energy Electricity Gasoline Natural Gas A Prices 2021 $0.2387 $4.44 $18.19 2022 $ 0.2614 $5.23 $ 20.34 Quantity 6684 kWh 437 gallons 54.78 "thousand cubic feet"Arturia Year 1 2 G Nominal GDP Population GDP Deflator $100 $240 100 120 20 G 25 Ringberg Year Nominal 1 2 (a) Calculate each of the following for Year 2. Show your work. (1) Real GDP per capita for Arturia (ii) Real GDP per capita for Ringberg O (c) Calculate each of the following in Year 2. Show your work. (1) The inflation rate in Arturia (ii) The inflation rate in Ringberg $200 GDP Deflator $300 C GDP Population с 100 150 25 (b) If Arturia and Ringberg have the same velocity of money in Year 2, which nation must have the higher money supply in Year 2? Explain. 25 (d) Based on your answer to part (c), if the nominal interest rate is the same for both nations in Year 2, which nation experiences the higher real interest rate in Year 2? Explain. (e) Ringberg produces consumer goods and capital goods. While maintaining full employment, Ringberg decides to allocate more resources to the production of consumer goods. What will be the effect on the long-run economic growth rate in…If the consumer price index was 100 in the base year and 106 in the following year, then the inflation rate was a. 1.06 percent b. 6 Percent c. 10.6 percent d. 106 percent