Abby consumes only apples. Year 1 Year 2 red $1 each $2 each green $2 each...

Abby consumes only apples.

	Year 1	Year 2
red	$1 each	$2 each
green	$2 each	$1 each

In year 1 Abby buys 10 red apples and in Year 2 Abby buys 10 green apples.

Compute a CPI for apples for each year. Assume that year 1 is the base year in which the consumer basket is fixed. How does your index change from year 1 to year 2? (at least five sentences to explain)

Suppose Abby is happy eating red or green apples. How much has the true cost of living increased for Abby? (at least five sentences to explain)

State and explain 3 differences between GDP deflator and CPI

The Bureau of Labor Statistics announced that in January 2013, of all adult Americans, 143,322,000 were employed, 12,332,000 were unemployed, and 89,008,000 were not in the labor force. Use this information to calculate: the adult population, the labor force, the labor force participation rate, and the unemployment rate.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

problem 3 (ii) Michael consumes apples and pears. In year 1, apples cost $1 each, pears...

problem 3 (ii) Michael consumes apples and pears. In year 1, apples cost $1 each, pears cost $2 each, Michael buys 4 apples and 2 pears in year 1. In year 2, apples cost $2 each and pears cost $1 each, and michael buys 2 apples and 4 pears. Define the implicit price deflator as nominal spending divided by real spending; compute the deflator for each year. How does the deflator change from year 1 to year 2?

Bernard has a weekly income of 10 dollars and he only consumes apples and bananas ....

Bernard has a weekly income of 10 dollars and he only consumes apples and bananas . When the price of apples is 2 dollars and the price of banana is 1 dollar, he consumes 3 apples and 4 bananas. Last week, the government announced that due to an expected shortage in apples, the consumption of apples is limited to only 1 unit for 1 person. After new law, Bernard started to consume 1 apple and 8 bananas . Do these...

We color each of the 99 numbers 1, 2, ..., 99 either red or green. We...

We color each of the 99 numbers 1, 2, ..., 99 either red or green. We say that a coloring is good if there are more red numbers from 1 to 50 than red numbers from 51 to 99. A. How many different colorings of these 99 numbers are there? B. How many different good colorings of these 99 numbers are there? I dont think the other answered solution is clear/correct. Please answer it correctly and explain. Thanks

Sam consumes only green eggs and ham. Ham is an inferior good for Sam. One day...

Sam consumes only green eggs and ham. Ham is an inferior good for Sam. One day the price of green eggs goes up. a. Illustrate Sam’s old and new optimum points, and show both the substitution and the income effects. How does this graph reflect the fact that ham is an inferior good? b. True or False: When the price of green eggs goes up, Sam certainly buys more ham than before. Justify your answer carefully, by considering the directions...

The green and red Company manufactures two products, Product 1 and Product 2. Product 2 was...

The green and red Company manufactures two products, Product 1 and Product 2. Product 2 was developed as an attempt to enter a market closely related to that of Product 1. Product 2 is the more complex of the two products, requiring three hours of direct labour time per unit to manufacture compared to one and one-half hours of direct labour time for Product 1. Product 2 is produced on an automated production line. Overhead is currently assigned to the...

In year 1 and year 2, there are two products produced in a given economy: apples...

In year 1 and year 2, there are two products produced in a given economy: apples and oranges. Suppose that there are no intermediate goods. In year 1, 10 apples are produced and sold at $4 each, and in year 2, 8 apples are produced and sold at $5 each. In year 1, 2 oranges are sold for $12 each, and in year 2, 5 oranges are sold for $6 each. What is the CPI for year 2 using year...

Suppose the base year is 2005, and the only goods in the economy are apples and...

Suppose the base year is 2005, and the only goods in the economy are apples and bananas. In 2005 both apples and bananas cost $1, and 100 apples and 100 bananas are produced. In 2006, apples cost $20 and bananas cost $5, and 50 apples and 200 bananas are produced. What is nominal GDP in 2005? What is real GDP in 2005? What is the GDP deflator in 2005? In 2006? In 2006? In 2006?...

Urn 1 contains 8 green balls and 10 red balls. Urn 2 contains 7 green balls...

Urn 1 contains 8 green balls and 10 red balls. Urn 2 contains 7 green balls and 5 red balls. A die is rolled, if a 1 or 2 is rolled, a ball is chosen from urn 1, if a 3, 4, 5, or 6 is rolled, a balls is chosen from urn 2. What is the probability of selecting a green ball? Please show all work.

Bag 1 contains 3 red balls and 7 green balls. Bag 2 contains 8 red balls...

Bag 1 contains 3 red balls and 7 green balls. Bag 2 contains 8 red balls and 4 green balls. Bag 3 contains 5 red balls and 11 green balls. Bag 1 is chosen twice as often as either Bag 2 or Bag 3 (which have the same probability of being chosen). After a bag is chosen, a ball is chosen at random from that bag. Calculate the probability that: a) a red ball is chosen b) a red ball...

Suppose that a drawer contains 8 marbles: 2 are red, 2 are blue, 2 are green,...

Suppose that a drawer contains 8 marbles: 2 are red, 2 are blue, 2 are green, and 2 are yellow. The marbles are rolling around in a drawer, so that all possibilities are equally likely when they are drawn. Alice chooses 2 marbles without replacement, and then Bob also chooses 2 marbles without replacement. Let Y denote the number of red marbles that Alice gets, and let X denote the number of red marbles that Bob gets. a. Find probability...

Subjects