For the following four questions please use the following table and information. Assume that the CPI base year is 1990 and also assume that the CPI market basket has .04 houses, .1 cars, and 1,500 gallons of gasoline. Please use 1 decimal place in your answers. Nominal House Price Car Price Gasoline Price per Gallon $150,000 $10,000 $2.00 $210,000 $18,000 $2.10 $225,000 $25,000 $2.30 $250,000 $30,000 $2.50 $252,000 $30,500 $2.70 Question 1 1 pts What is the value of the CPI in 1990? Question 2 What is the value of the CPI in 2020? What is the value of the core CPI in 2020? Hint: what of this market basket would be excluded and what would be included? Question 4 1 pts Say that you wanted to compute the market basket in each of 1990, 2000, 2010, 2019, and 2020. when you compare your calculations, what is kept constant over these years? If) the prices of goods '7'] the number of goods in the market basket \"\"1. nothing I Use the data in the following table for the next seven questions. Note that "%A" is shorthand for "percentage change." If the answer is a percentage, please just enter the number. Thus, say an answer of yours is 3.5%, then below you would enter "3.5" (without the quotes) in the box below. Be careful not to include the percent symbol. Also, please use just one decimal place. real nominal %ACP| from nominal mortgage year GDP GDP CPI the previous price of1 interest (trillions) (trillions) year apple rate 1990 $14.80 $12.10 130 4.0% $0.50 8% 2000 $16.60 $16.40 205 1.5% $0.60 5% 2010 $18.20 $19.75 230 2.0% $0.75 6% 2019 $20.00 $22.00 250 3.5% $0.95 7% 2020 $20.40 $22.85 260 4.0% $1.00 6% Question 5 1 pts Is the rate of inflation for consumers from 2019 to 2020 correct? if\". yes m .__| no What was the rate of economic growth from 2019 to 2020? (As in the directions above, just enter the percent number; such as 3.5 for 3.5%). l l Question 7 1 pts What was the ination rate for the entire economy from 2019 to 2020? l What was the real interest rate for a consumer purchasing a house in 2020? They'll be taking out a home loan, often called a mortgage. Please convert the nominal price for an apple from 1990 to the prices of 2020. Assume that a consumer purchases it. Question 10 1 pts What was the percentage change in the real price of apples from 2019 to 2020 for consumers? Question 11 1 pts Deate the nominal price of apples from 2020 for consumers (that is, convert the 2020 nominal price to the base year of the CPI). Please use two decimal place for this answer. Question 12 1 pts I came across a report that found that from 2010 to 2019 the real price of the average airline ticket fell by 8%. What does this mean? I\"? compared to other consumer goods. ying became cheaper If? compared to other consumer goods, ying became more expensive Question 13 Which of the following would be used to track the business cycle? I\"). the CPI IF\" the GDP deator (j. real GDP Question 14 1 pts As this question is being written, Congress is considering increasing transfer payments to help speed economic growth as the economy climbs out of the Covid Recession. This would be an example of the dual mandate being used. If) true I\" false Question 15 1 pts Why is the current value of the GDP deflator so much smaller than the current value of the CPI? O inflation for consumers has been greater than for the economy as a whole O inflation for consumers has been less than for the economy as a whole the CPI's base year was years after the GDP deflator's base year O the CPI's base year was years before the GDP deflator's base year
