Reference no: EM13203505
how economists measure changes in prices and income. It uses a simple example with just two goods to illustrate the concepts of a basket of goods, a price index, inflation, nominal income, and real income.
Last year, Maria's income was $1,800. Milk cost $1 per gallon. Bread, which is very expensive where Maria lives, cost $3 per loaf. This year, her income is $3,600. The price of milk increased to $2 per gallon, and the price of bread increased to $9 per loaf.
1) This year, what is the price of a goods basket with 6 gallons of milk and 4 loaves of bread? (Because you will need this answer for a subsequent problem, you should make a note of this amount.)
2)How much did this basket with 6 gallons of milk and 4 loaves of bread cost last year? (Because you will need this answer for a subsequent problem, you should make a note of this amount.)
|
How would you expect the term premium to change
: what would happen to the yield curve if investors were concerned about stability in foreign countries and rushed their money into the U.S to buy long-term treasury securities how would you expect the term premium to change
|
|
What is the incremental irr for an annual volume
: A needed service can be bought for $550 per unit. The same service can be provided by equipment that costs $225,000, has a salvage value of $75,000 at the end of 10 years and costs $21,500 annually plus $35 per unit to operate.
|
|
Find the rate of change of the angle of elevation
: A balloon rises at a rate of 4 meters per second from a point on the ground 50 meters from an observer. Find the rate of change of the angle of elevation of the balloon from the observer when the balloon is 50 meters above the ground.
|
|
Calculate work done if the crane lifts the ball from ground
: A 5000-lb wrecking ball hangs from a 20-ft cable of density 5 lb/ft attached to a crane. Calculate the work done if the crane lifts the ball from ground level to 20 ft in the air by drawing in the cable.
|
|
How much did this basket with 6 gallons of milk
: Last year, Maria's income was $1,800. Milk cost $1 per gallon. Bread, which is very expensive where Maria lives, cost $3 per loaf. This year, her income is $3,600. The price of milk increased to $2 per gallon, and the price of bread increased to $..
|
|
Find the cost of producing x yards of a certain fabric
: The cost (in dollars) of producing x yards of a certain fabric for wedding dressess is C(x)=1200+12x-.1x^2+.0005x^3. the company finds that id it sells x yards of fabric
|
|
How much money will she have in her bank account
: How much money will she have in her bank account after five years and how much money will be in her account after five years?
|
|
What is the current macroeconomic situation
: What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.) What fiscal policies and monetary policies would be appropriate at this time
|
|
State mario be sure the glass will fit the window
: Mario broke a pane of glass in a window. The opening measured 7 1/4" by 9 1/2". At the hardware store, they sold him a pane of glass that was 7 1/4" by 9 1/2" to the nearest 1/4".
|