Reference no: EM131004645
CPI: Inflation Picks Up
According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%.
1. What percentage change in the CPI up until August is accounted for by the changes in the prices of food, clothing, and medical care?
2. Given the changes in food, clothing, and medical care, by what percentage did the prices of the other items in the CPI basket change?
3. Why did the prices of the other items change?
4. What is the probable impact of the change of other items in the CPI basket?
You must incorporate a minimum of three sources in addition to the text in this assignment. Your three sources may include scholarly sources, credible newspapers, trade journals, or websites listed here. Be sure to use OCLS to find these sources.
Your entire assignment must be APA formatted.
|
If the expected path of interest rates on one-year bonds
: If the expected path of interest rates on one-year bonds over the next five years is 2%, 4%, 3%, 2%, and 1%, the expectation theory predicts that the bond with the lowest interest rate today is the one with a maturity of a) one year b) two years c) t..
|
|
If supply of apples decreases and demand or apples increases
: If supply of apples decreases and demand or apples increases, then the equilibrium
|
|
Cell phone market as technology improvements bring cost down
: What will happen in the cell phone market as technology improvements bring cost down?
|
|
Earnings in the business to finance future expansion
: Tina is the sole owner of Tina's Lawn Mowing, Incorporated (TLM). In one year, TLM collects $1,000,000 from customers to mow their lawns. TLM's equipment depreciates in value by $125,000. TLM pays $600,000 to its workers, who pay $140,000 in taxes on..
|
|
Changes in the prices of food-clothing and medical care
: According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..
|
|
The governor is attacking the new traffic rules
: The governor is attacking the new traffic rules. His views are wrong because he was given a speeding ticket last week.
|
|
Most effective way a firm can be competitive over time
: The issue of competition over time presents a number of problems for a firm. Based on research for this question and personal experience, what do you believe is the most effective way a firm can compete over time? Your answer should address some of t..
|
|
What is the required quarterly deposit
: Your company must make a $750,000 balloon payment on a lease 2 years and 9 months from today. You have been directed to deposit an amount of money quarterly, beginning today, to provide for the $750,000 payment. The account pays 8% per year, compound..
|
|
Consider the agency relationship in malpractice cases
: Consider the agency relationship in malpractice cases under a contingency fee system. The plaintiff (party that sues) typically pays his or her attorney about one-third of any monetary damages that are awarded (and nothing if the case is lost). Suppo..
|