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18. Using the file, annual prices. fall.2016.xIs, in the sheet titled annual real prices, calculate the real prices of the various products. Use those results
18. Using the file, annual prices. fall.2016.xIs, in the sheet titled annual real prices, calculate the real prices of the various products. Use those results to fill in the following table: Real Prices (1982-84=1.00) of Various Products Year bacon eggs tomatoes butter turkey 2006 2016 19. Give the formula for conversion from nominal to real prices using the consumer price index, CPI, where the base period value of the CPI is 100. A simple method for calculating the following is once you have calculated the real prices, use the Excel formula, =slope(y_values, x_values). With the real bacon prices in b2 through b12 and the trend values in g2 through g12, = slope(b2.b12, $g2.$g12) will give the trend slope for real bacon prices. Do that for the 5 products. 20. For each product's real price calculate a trend regression. Which of the products lost the most value per year? How much value did it lose per year in real terms? 21. Which product gained value over the period? How much value did it gain per year in real terms? For the next 3 problems assume that producers in the US grow corn for about $2.00/bu. and soybeans for $4.00/bu. Producers in Mexico grow corn for the equivalent of $5.00/bu. and soybeans for $5.00/bu. Mexico/US
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