Chapter 11 macroeconomic

In 1975 dollars, a 1975 golf ball cost $0.20 and a 2005 golf ball cost

$0.55, so golf balls were cheaper in 1975

The price of a 1975 golf ball in 2005 dollars is

$0.73.

The cost of the basket in 2012 was

$225

If the nominal interest rate is 5 percent and the real interest rate is 7 percent, then the inflation rate

-2 percent

If 2013 is the base year, than the CPI for 2013 was

100.0.

Is 2012 is the base year, then the CPI for 2012 was

100.0.

If 2012 is the base year, than the CPI for 2013 was

104.4.

If 2012 is the base year, then the inflation rate for 2012 equals

CPI in 2013-CPI in 2012/CPI in 2012 x 100

The steps involved in calculating the consumer price index in the inflation rate, in order, are as follows

Fix the basket, find the prices, compute the basket cost, choose a base year and compute the index, and compute the inflation rate

The CPI is calculated

Monthly by the Bureau of Labor statistics

If the quality of a good improves well its price remains the same, then the value of a dollar

Rises and the cost of living decrease

When constructing the customer price index, the Bureau Labor Status does not do which of the following

Survey sellers to determine what the typical consumer buys

The CPI is a measure of the overall cost of

The goods and services purchased by a typical consumer

Which of the following statement is correct about the relationship between the nominal interest rate and the real interest rate?

The real interest rate is the nominal interest rate minus the rate of inflation

Inflation rate is calculated

by determining the percentage change in the price index from the preceding period

A COLA automatically raises the wage when

the consumer price index increases

As long as prices are rising over time, then

the nominal interest rate exceeds the real interest rate

The cost of the basket in 2013 was

$235

If 2013 is the base year, then the CPI for 2012 for was

95.7.

If 2012 is the base year, then the inflation rate in 2013 was

4.4 percent

If 2013 is the base year, then the inflation rate in 2013 was

4.4 percent

If the nominal interest rate is 8 percent and the rate of inflation is 3 percent, then the real interest rate is

5 percent

The price index was 120 in 2012 and one have in 126 in 2013. What was the inflation rate?

5.0 percent

Of Social Security benefits and federal income tax brackets, which is indexed?

Both are indexed

Do you go off the consumer price index is to measure changes in the

Cost of living