An economy produces the following products: burgers and coffee. Use the information in the following table...

An economy produces the following products: burgers and coffee. Use the information in the following table to calculate

(a) The total cost of the consumption basket consisting of 8 burgers and 15 cups of coffee in 2010, 2018 and 2019

(b) Consumer Price Index for years 2018 and 2019 that measures the cost of the consumption basket relative to the base year.

(c) Inflation rate for 2019.

Product	Quantity	Base Year Price (2010)	Price (2018)	Price (2019)
Burgers	8	$2.00	$2.1	$2.5
Cups of coffee	15	$4.00	$4.50	$4.50

Expert Solution

Product	Quantity	Base Year (2010)	Price (2018)	Price (2019)	Consumption Cost (2010)	Consumption Cost (2018)	Consumption Cost (2019)
	A	B	C	D	E=A*B	F=A*C	G=A*D
Burgers	8	2.00	2.10	2.50	16	17	20
Cups of coffee	15	4.00	4.50	4.50	60	68	68
Sum of Consumption Cost (E/F/G)					76	84	88

CPI= (Cost of Market in a year/ Cost of market in Base Year)*100						110.92	115.13
Calculation						(84/76)*100	(88/76)*100

Inflation rate= (CPI 2019 - CPI 2018)/CPI 2018							3.80%
Calculation							(115.13-110.92)/110.92

Please Upvote and Support!!.

Thanks

Rahul Sunny answered 1 year ago

Consider an economy that produces and consumes coffee, bread and auto- mobiles. In the following table,...

Consider an economy that produces and consumes coffee, bread and auto- mobiles. In the following table, we have data for two different years. The first 2 questions refer to this table. Year 2017 Year 2018 Price of 1 Automobile $30,000 $30,500 Price of 1 loaf of Bread $1.50 $1.60 Price of 1 cup of Coffee $2.00 $2.20 Number of Automobiles Produced 1000 1100 Number of Loaves of Bread Produced 400,000 400,000 Number of Cups of Coffee Produced 100,000 0 105,000...

CH8 Suppose an economy produces three final products. Use the following table to calculate GDP and...

CH8 Suppose an economy produces three final products. Use the following table to calculate GDP and economic growth rate. Product Base year price Price in 2014 Price in 2015 Price in 2016 Output 2014 Output 2015 Output 2016 A $2.00 $3.00 $3.30 $3.60 150 160 170 B $3.00 $4.50 $4.80 $5.00 100 110 130 C $4.00 $5.50 $6.00 $6.30 110 120 125 Fill in the blanks of the next table. Numbers only without thousand separator. Item Value nominal GDP in...

Vintage Coffee Co. produces three products: coffee beans, tea bags, and chai. The following monthly information...

Vintage Coffee Co. produces three products: coffee beans, tea bags, and chai. The following monthly information is available regarding Vintage's manufacturing costs and production volumes. Month Total Manufacturing Costs Pounds of coffee beans produced Number of tea bags produced Boxes of chai produced April 2019 $1,709,880 13,800 15,000 1,500 May 2019 $1,708,550 13,350 11,250 2,100 June 2019 $1,667,130 12,750 7,500 2,400 July 2019 $2,647,000 14,780 10,150 5,400 Aug 2019 $1,918,680 14,330 7,500 3,160 Sept 2019 $1,907,030 13,950 10,500 3,600 Oct...

QUESTION 10 Suppose the information in the following table is for a simple economy that produces...

QUESTION 10 Suppose the information in the following table is for a simple economy that produces only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that shoes, hamburgers, and shirts are final goods and that all the cotton is used in the production of shirts. Calculate the GDP deflator for 2014. Use 2009 as the base year for the calculations. Provide your answer as a number rounded to two decimal places. Do not include any symbols, such as "$,"...

Use the information about Billy's Burgers to answer the following question(s): Billy's Burgers Figures in...

Use the information about Billy's Burgers to answer the following question(s): Billy's Burgers Figures in $ millions Income Statement 2010 Balance Sheet 2010 Net Sales 246.0 Assets Costs exc. Dep. 187.0 Cash 8.0 EBITDA 59.0 Accts. Rec. 21.0 Depreciation 17.2 Inventories 23.0 EBIT 41.8 Total Current Assets 52.0 Interest 12.0 Net PP&E 145.0 Pretax Income 29.8 Total Assets 197.0 Taxes 10.4 Net Income 19.4 Liabilities and Equity Accts. Payable 18.0 LongminusTerm Debt 82.0 Total Liabilities 100.0 Total Stockholders' Equity...

An economy produces and consumes only two products: college education and economic textbooks. The following table...

An economy produces and consumes only two products: college education and economic textbooks. The following table gives the appropriate data for two different years. 2005 2008 Price of College Education $10,000 $15,000 Quantity of College Education 50 60 Price of Economics Textbooks $100 $125 Quantity of Economics Textbooks 20 25 Using the above table, compute the following and show your calculations Nominal GDP for 2005 and 2008. Real GDP for 2008 using 2005 as the base year. The...

A very simple economy produces three goods: movies, burgers, and bikes.

able 19-17 2013 2018ProductQuantityPriceQuantityPriceMovies 20 $6.00 30 $7.00Burgers 100 2.00 90 2.50Bikes 3 1,000.00 6 1,100.00A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.Refer to Table 19-17. What is real GDP in 2018, using 2013 as the base year?

The economy of Tuland produces only two products apples and digital cameras. The following information is...

The economy of Tuland produces only two products apples and digital cameras. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2009 2010 Quantity of apples 10 11 Quantity of digital cameras 20 30 Price of apples $5.00 $6.00 Price of digital cameras $50.00 $30.00 Using above information, calculate the following values. Real GDP for 2009 using 2009 as base year equals $nothing. (Enter your response rounded to two decimal places.)...

The economy of Tuland produces only two products books and watches. The following information is available...

The economy of Tuland produces only two products books and watches. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2009 2010 Quantity of booksbooks 200 240 Quantity of watcheswatches 60 75 Price of booksbooks $10.00 $11.50 Price of watcheswatches $20.00 $22.00 Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.) 1. GDP for 2009 in 2009's prices 2. GDP for 2009 in...

Jamdown & Associates Ltd produces two products, Glam120 and Glam220. The following table provides information on...

Jamdown & Associates Ltd produces two products, Glam120 and Glam220. The following table provides information on budgeted production for 2018: Production Forecast Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Glam120 5,000 6,000 4,800 5,500 21,300 Glam220 6,500 4,600 5,400 6,200 22,700 Notes: It is the company’s policy to have stock on hand at the end of each quarter equaling to 10% of production for the next quarter. Budgeted production for the first quarter of 2019 were:...

Question