User Account

All Pages

Compute the cpi consists of 100 units of food

Assignment Help Macroeconomics
Reference no: EM132606907

Assume there is a simple economy where people consume only two goods, food and clothing. Further assume that the market basket of goods used to compute the CPI consists of 100 units of food and 20 units of clothing.

Yearly Price per Unit Food Clothing

2004 price per unit $8 $20

2005 price per unit $12 $40

a. Do you think the CPI price changes affect all consumers in the economy to the same extent? If not, how do you determine who "wins" and who "loses" in this particular situation? Explain.

Reference no: EM132606907

Questions Cloud

Identify two things a firm can do to make : Identify 2 things a firm can do to make it harder for a cashier to steal from the business and hide the theft. Explain how each new measure by the firm
Show the income statement extract : The lease is for four years at an annual cost of $2,000.00 payable annually in arrears. Show the income statement extract
Explain the elements of an assurance engagement : What is meant by reasonable and limited assurance engagements? Give an example for each type. explain the elements of an assurance engagement.
Determine characteristics that make the author a superstar : Using the guidelines listed in Section 10.3 of our text, critique the book to determine the characteristics that make the author a superstar. In addition.
Compute the cpi consists of 100 units of food : Further assume that the market basket of goods used to compute the CPI consists of 100 units of food and 20 units of clothing.
Make the journal entry for the sale and post to the proper : Janet paid cash in full (Form 13). This will be Job #133 for reference purposes. Make the journal entry for the sale and post to the proper G/L accounts.
Determine the target cost for model : Determine the target cost for Model J20, assuming that the historical markup on product cost and selling price is maintained
Research design is art and science of conducting studies : Research design is the art and science of conducting studies that maximize reliability and validity of the findings and minimize bias or error
Components of macroeconomic aggregates : Now that you have segmented the components of macroeconomic aggregates, explain their implications on the national economy.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd