econ 11 questions and answers 100% correct

econ 11 questions and answers 100% correct Calculate the CPI market basket and the percentage of the average household budget spent on juice in the reference base year. In​ 2015, the average household spent ​$64 on juice and ​$35 on cloth. The price of juice was ​$4 a​ bottle, and the price of cloth was ​$5 a yard. In​ 2016, the price of juice is ​$3 a bottle and the price of cloth is ​$6 a yard 64/4= 16 bottles of juice 35/5= 7 yards of cloth 64+35= 99 64/99= 64.6% on juice In​ 2015, the year of the Consumer Expenditure Survey and also the reference base​ year, the average household spent ​$20 on juice and ​$25 on cloth. The price of juice in 2015 was ​$2 a​ bottle, and the price of cloth was ​$5 a yard. In​ 2016, juice is ​$5 a bottle and cloth is ​$4 a yard. Calculate the CPI in 2016 and the inflation rate between 2015 and 2016. CPI= 5+2= 7 7/45= 155.6 inflation rate= 55.6 %. Calculate the inflation rates in 2013 and 2014. Did the CPI rise or fall in 2014​? Did the inflation rate increase or decrease in 2014​? year . cpi 2012 . 112 2013 . 114 2014 . 117 (114-112/114) * 100)= 1.8 (117-114/117) * 100)= 2.6 increase; increase The United States experienced​ _______ in December 2015 because​ _______. ​deflation; the CPI decreased Of the items measured in the news​ clip, _______ has the highest weight in the CPI and​ _______ has the lowest weight in the CPI. ​rents; medical care In​ Canada, the reference base period for the CPI is 2002. By​ 2014, prices had risen by 25.2 percent since the base period. The inflation rate in Canada in 2015 was 1.1 percent. Calculate the CPI in Canada in 2015. 1.1/100= .011 100+25.2= 125.2 (0.011 * 125.2) + 125.2 = 126.5772 In​ Brazil, the reference base period for the CPI is 2000. By​ 2005, prices had risen by 51 percent since the base period. The inflation rate in Brazil in 2006 was 10​ percent, and in​ 2007, the inflation rate was 9 percent. Calculate the CPI in Brazil in 2006 and 2007.​ Brazil's CPI in 2008 was 173. Did​ Brazil's inflation rate increase or decrease in​ 2008? 10/100= .1 100+51= 151 (0.1 * 151) + 151= 166.1 166.1 * 1.09 ​= 181.0. decreased The table shows the quantities of the goods Suzie bought and the prices she paid during two consecutive weeks. ​Suzie's CPI market basket contains the goods she bought in Week 1. (screenshot of weeks) $37.50 divided by ​$98.25​) times ​100, which is 38.2 percent of the CPI market basket. The value of​ Suzie's CPI in Week 2 is= 93.25/98.25 * 100= 94.9 ​​Suzie's inflation rate in Week 2 is= [(94.9-100)] / ​(100)] * 100= -5.1 Falling oil prices pushed the CPI down 0.1 percent in December 2015. Energy prices fell 2.4 percent and the price of gasoline fell by 3.9 percent. ​Source: Los Angeles Times​, January​ 20, 2016 Given the further information that the weight on energy prices in the CPI is 8​ percent, by how much would the CPI have changed in December 2015 if energy prices had not​ changed? If energy prices had not​ changed, the CPI in December 2015 would have​ _______. increased by 0.09 percent Falling oil prices pushed the CPI down 0.1 percent in December 2015. Energy prices fell 2.4 percent and the price of gasoline fell by 3.9 percent. ​Source: Los Angeles Times​, January​ 20, 2016 Given that energy prices are 8 percent of the CPI​ basket, by what percentage did the prices of other items in the CPI basket​ change? risen by less than the fall in energy prices The Consumer Price Index is a measure of the​ _____ of the prices paid by​ _____ consumers for a fixed market basket of consumption goods and services. ​average; urban The reference base period is a period for which the​ _____ is defined to equal​ _____. Currently, the reference base period is​ . ​CPI; 100 The inflation rate is the percentage change in the​ _____ from one year to the next. Deflation is a situation in which the​ _____ is​ _____ and the inflation rate is​ _____. price​ level; price​ level; falling; negative A commodity substitution bias​ _______ when the CPI is calculated in 2016 using the 2015 basket. ​exists; people switch from the relatively more expensive scallops to the relatively less expensive shrimp The CPI that uses the 2015 basket​ _______ the inflation rate in 2016. overstates the inflation rate in 2016 These three measures of the price level give different inflation rates because each measure​ _______. is based on the prices of different baskets of goods and services On the basis of these price​ observations, commodity substitution and outlet substitution might have occurred when consumers bought more​ ______ in July because they had become relatively​ ______ expensive. steak and​ bread; less bananas and​ lettuce; more A cost of living index is a measure of the change in the amount of money that people need to spend to achieve a given​ _____. standard of living