Macroeconomics

If the CPI was 95 in 1955 and is 475 today, then $100 today purchases the same amount of goods and services as:

$20.00 purchased in 1955.

Babe Ruth's 1931 salary was $80,000. Government statistics show a consumer price index of 15.2 for 1931 and 214.5 for 2009. Ruth's 1931 salary was equivalent to a 2009 salary of about:

1128947

The table below pertains to Pieway, an economy in which the typical consumer's basket consists of 10 bushels of peaches and 15 bushels of pecans. Refer to the table above. If 2005 is the base year, then the CPI for 2006 was:

120

The consumer price index was 225 in 2006 and 234 in 2007. The nominal interest rate during this period was 6.5 percent. What was the real interest rate during this period?

2.5%

If the price of Italian shoes imported into the United States increases, then:

the consumer price index will increase, but the GDP deflator will not increase. CORRECTING ECONOMIC VARIABLES FOR THE EFFECTS OF INFLATION

Suppose that over the past year, the real interest rate was 3 percent and the inflation rate was -1 percent. It follows that:

the dollar value of savings increased at 2 percent, and the purchasing power of savings increased at 3 percent.

The table below pertains to Pieway, an economy in which the typical consumer's basket consists of 10 bushels of peaches and 15 bushels of pecans. Refer to the table above. If 2005 is the base year, then the inflation rate in 2006 was:

20%

The table below pertains to Pieway, an economy in which the typical consumer's basket consists of 10 bushels of peaches and 15 bushels of pecans. Refer to the table above. The cost of the basket in 2006 was:

240

An increase in the price of dairy products produced domestically will be reflected in:

both the GDP deflator and the consumer price index.

A decrease in the price of domestically produced nuclear reactors will be reflected in:

the GDP deflator but not in the consumer price index.