Macro-Ch.11

Suppose a basket of goods and services has been selected to calculate the CPI and 2009 has been selected as the base year. In 2007, the basket's cost was $64; in 2009, the basket's cost was $68; and in 2011, the basket's cost was $70. The value of the CPI in 2011 was

$102.94

If the CPI was 108.00 in 1942 and is 336.96 today, then $10 in 1942 purchased the same amount of goods and services as

$31.20 purchases today

When the consumer price index rises, the typical family

has to spend more dollars to maintain the same standard of living

The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Refer to Table 24-5. If the base year is 2004, then the CPI in 2004 was

100

Which of the following changes in the price index produces the greatest rate of inflation: 106 to 112, 112 to 118, or 118 to 124?

106-112

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $52; and in 2016, the basket's cost was $55. The value of the CPI in 2016 was

110

The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Refer to Table 24-5. If the base year is 2004, then the CPI in 2005 was

112.5

Which of the following changes in the price index produces the greatest rate of inflation: 12 to 15, 20 to 24, or 30 to 35?

12 to 15

The table below lists annual consumer price index and inflation rates for a country over the period 2005-2010. Assume the year 2005 is used as the base year. Refer to Table 24-1. What belongs in space D?

12%

The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. Refer to Table 24-6. If the base year is 2010, then the economy's inflation rate in 2010 was

20 percent

If the consumer price index changes from 125 in September to 150 in October, what is the rate of inflation?

20%

The table below lists annual consumer price index and inflation rates for a country over the period 2005-2010. Assume the year 2005 is used as the base year. Refer to Table 24-1. What belongs in space E?

3.9%

The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Refer to Table 24-5. If the base year is 2004, then the inflation rate in 2006 was

44.4%

Which of the following changes in the price index produces the greatest rate of inflation: 80 to 100, 100 to 120, or 150 to 170?

80 to 100

Suppose a basket of goods and services has been selected to calculate the CPI. In 2002, the basket's cost was $80; in 2008, the basket's cost was $92; and in 2010, the basket's cost was $108. The base year must be

The base year cannot be determined from the given information

The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Refer to Table 24-5. If the base year is 2004, then the CPI

increased from 2004 to 2005 and increased from 2005 to 2006

Which entity within the U.S. government is responsible for computing and reporting the CPI?

the department of labor

Suppose that over the past year, the real interest rate was 6 percent and the inflation rate was 4 percent. It follows that

the dollar value of savings increased at 10 percent, and the purchasing power of savings increased at 6 percent

The CPI is a measure of the overall cost of

the goods and services purchased by a typical consumer

The term inflation is used to describe a situation in which

the overall level of prices in the economy is increasing