Inflation
blank income is the the amount of goods and services that can be purchased with actual income. Listen to the complete question
Real
The price of a good is a measure of how much money it takes to buy that good.
True
Economists define inflation as a general increase in the blank of goods and services in an economy.
price
The producer price index measures changes in blank prices.
producer
From 1979 to 2013, blank earnings decreased for those having only a high school education or less.
real
The CPI will always be blank for the base year because we are comparing the value of the basket to itself.
100
Use the information in the table above to answer the question. What is the CPI in year 3, using Year 1 as the base year?
114.73
If the CPI was 240 in Year 1 and 245.1 in Year 2, what is the inflation rate between year 1 and year 2?
2.13%
The CPI represents more than blank categories (not items) of goods and services, each of which can be included in one of eight major groups.
200
Suppose that nominal income is $5,000 and the CPI is 115. Real income is equal to $ blank.
4348
The U.S. Bureau of Labor Statistics also collects monthly information on the prices of about blank items to compute the Consumer Price Index (CPI).
80,000
Which of the following does the Bureau of Labor Statistics compute?
CPI
[(Value of a market basket in Year T / Value of a market basket in base year) X 100] = __________
CPI
The blank Price Index allows us to calculate the best inflation measure for the typical consumer in the economy.
Consumer
Which of the following can be used to compare today's income levels to those of earlier years?
Consumer Price Index
An economic indicator known as the CPI is the:
Consumer Price Index.
To determine your real wage, you should divide your nominal wage by the:
Consumer Price Index.
results in a reduction in someone's ability to buy goods and services.
Inflation
Vegetables are purchased by a restaurant. Which major group of the CPI does this purchase belong to?
It is not included in any CPI category
The Consumer Price Index measures the average price for a market basket of goods and services purchased by the typical blank from one year to the next.
consumer
For anyone receiving an annuity or any other fixed payment over time such as a pension, inflation purchasing power and can have important consequences.
decrease
The CPI is computed by the U.S. Bureau of blank Statistics.
demand
In the base year, nominal and real incomes are blank.
equal
The measure of the purchasing power of what you earn every month:
real income.
If the CPI and the inflation rate calculated overstate the true level of inflation in the economy, then the purchasing power of retirees is:
rising over time and retirees are becoming better off.
The annual increase in Social Security payments is based on the inflation rate as calculated by:
the Consumer Price Index.
The consumer price index (CPI) measures:
the average price of a market basket of goods.
Fill in the blank question. If nominal income increases by 5 percent and prices by 3 percent, the percentage change in real income will be blank percent.
two
A percentage change in a value equals the:
value in the later year minus the value in the earlier year divided by the value in the earlier year and multiplied by 100.
The Consumer Price Index is computed as:
(Value of the market basket in year t/Value of the market basket in the Base Year) x 100.
The CPI is computed by the U.S. Bureau of Labor Statistics through interviews and weekly diaries for more than blank families around the country.
10,000
Use the information in the table above to calculate the CPI in Year 2, using Year 1 as the base year. Round to the nearest whole number.
107
Purchases of capital equipment by firms or military equipment by the government are not included in the blank Price Index, but are included in the blank Price Index.
Blank 1: Consumer Blank 2: GDP
The blank Price Index does not include purchases of imported or used products, while the blank Price Index does account for them.
Blank 1: GDP Blank 2: Consumer
In the United States, the blank Price Index and the blank Price Index tend to move together and in the same direction.
Blank 1: GDP Blank 2: Consumer
In the base year, blank income and blank income are the same.
Blank 1: nominal Blank 2: real
We distinguish between blank income and blank income because receiving a salary increase is better than not getting one, but the additional dollars may not allow you to buy as many goods and services as last year due to inflation.
Blank 1: nominal Blank 2: real
The percentage change in blank income is approximately the percentage change in blank income minus the percentage change in prices.
Blank 1: real Blank 2: nominal
The blank Price Index is the broadest measure of prices in the economy; it considers prices for all goods and services produced in it.
GDP
The blank Price Index is the broadest measure of prices in the economy; it considers prices for all goods and services produced in it. Listen to the complete question
GDP
The CPI is computed by the U.S. Bureau of blank Statistics.
Labor
Use the table of prices above for the following question. Was there inflation between year 2 and year 3?
No
blank income is the actual number of dollars received in exchange for the different resources available in the economy.
Nominal
blank income is the number of dollars you receive for your labor.
Nominal
When you sell a stock, you must pay taxes on the gain in value. Why?
You must pay this tax based on the nominal change in value.
The Consumer Price Index (CPI) is constructed using the goods and services purchased by the blank household.
average
The Consumer Price Index measures the blank price for a market basket of goods and services purchased by the typical consumer from one year to the next
average
In computing the Consumer Price Index, the reference year is also known as the blank year.
base
From 1979 to 2019, real earnings decreased for those having only a high school education or less. Among the possible explanations for this trend offered by economists are:
globalization has helped those with greater education more than those with less education. technological change occurring in recent decades has increased the demand for people with more education.
In general, the greater your education level, the blank your average weekly nominal earnings.
higher
The CPI consumption category that accounts for the largest proportion of consumer spending is blank.
housing
When comparing periods of time separated by decades or generations:
income comparisons are not exact because of the different goods and services that can be purchased in different eras.
Economists define blank as a general increase in the prices of goods and services.
inflation
In general, an increase in the money supply causes:
inflation
The Consumer Price Index allows us to calculate blank for the typical consumer in the economy.
inflation
When calculating an blank rate, the most straightforward approach is to compare the price level in one year with the price level in the next year.
inflation
The percentage change in real income is approximately the percentage change in nominal income (plus/minus) the percentage change in prices.
minus
The Consumer Price Index (CPI) is calculated blank.
monthly
If nominal income increases by 5 percent and prices by 7 percent, the percentage change in real income will be blank percent.
negative two
Real income equals blank income divided by the Consumer Price Index times 100.
nominal
Real income equals income divided by the Consumer Price Index times 100.
nominal
When you sell a stock, you must pay taxes on the gain in value. You must pay this tax based on the blank change in value.
nominal
The actual number of dollars received in exchange for the different resources available in the economy is:
nominal income.
The number of dollars you receive for your labor is:
nominal income.
In the calculation of Consumer Price Index (CPI), a lawyer's fee is counted in the category of:
other goods and services.
In addition to the Consumer Price Index, the U.S. Bureau of Labor Statistics computes other blank indexes that are more applicable to other market participants.
price
The producer price index measures changes in producers' blank.
prices
blank income measures the purchasing power of what you earn every month.
real