QUIZ 3 Part C: Using Price Indexes The following question has 5 parts (a.-e.), parts d. and e. will be revealed after submitting your answer by hitting "Verify" on the preceding sections. The following table shows a price index base 100 = 2012 in Canada for the four quarters of 1977. Quarter Price Index 28.99 29.48 29.96 30.3 Answer the following questions. Enter only the value, without the % sign or any other symbols. a. What is the annualized rate of inflation between the first and the second quarter of 1977? Express your answer in percentage rounded to the nearest first decimal (use the exact formula). 6. b. How do you interpret the index of the first quarter of 1977: The price level is 71.07 percent lower than that of 2012. c. Suppose the average hourly wage was $19.72 in the fourth quarter of 1977. Calculate the real wage in dollars of 2012. Round your answer to the nearest second decimal. 65.08 d. The 1973 price index base 100 = 2012 is equal to 19.92 and the annual nominal interest rate between 1973 and 2012 is 10.5% on average. Answer the following questions, expressing your answer in percentage rounded to the nearest first decimal. Use the exact formula. What is the average annual inflation between 1973 and 2012? | Number What is the average annual real interest rate between 1973 and 2012? Use your previous answer rounded to the nearest first decimal. Number Section Attempt 1 of 1 VerifyPart A: National Accounts Consider the small economy represented in the following table. All values are in dollars. a. Consumption (C) 1136 O b. Government consumption (G) 0 0 Correct response: 205 FirmA Wages paid to employees ZIJIJ Taxes paid to government 158 Input imported 88 Revenue received 1099 Sold to Public {newly produced) 381 Sold to Government 108 Sold to Firm B 96 Sold to Firm C 66 Sold to a foreign country 359 Sold from inventory to Public 89 Unsold production 91 After-tax prot 653 Firm B Wages paid to employees 109 Taxes paid to government 149 Input purchased from Firm A 96 Revenue received 391 Sold to Public (newly produced) 210 Sold to Government 9? Sold to Firm C 84 After-tax prot 3? Firm C Wages paid to employees 101 Taxes paid to government 129 Input purchased from Firm A 66 Input purchased from Firm B 84 Revenue received 456 Sold to Public (newly produced) 368 Sold from inventory to Public 88 Unsold production 94 After-tax prot ?6 Additional Information Government transfers 176 Interest on government's debt 64 Private Saving 45? c. Investment (I) (hint: changes in inventory is part of investment) [\\i .I 'T' b [if