Inflation and Purchasing Power Answers

Which of the following factors are considered when calculating GDP?I. goods produced within a country by citizens of that countryII. goods produced within a country by residents who are not citizensIII. goods produced within a country for use in production of other goodsIV. goods produced by a country’s citizens outside of its bordersa.II and IIIb.I onlyc.I and IId.I, II, III, and IV

An end table costs $69.85 today. If the CPI is 194, what would an end table cost in 1983, to the nearest cent?a.$135.51b.$124.15c.$36.00d.$23.76

Minneapolis, MN has a CPI of 173. Anchorage, AK has a CPI of 226. How does the purchasing power of someone in Minneapolis earning a salary of $42,500 compare to the purchasing power of someone in Anchorage earning a salary of $67,000?a.The person living in Minneapolis has $57.61/CPI more than the person in Anchorage.b.The person living in Minneapolis has $130.45/CPI more than the person in Anchorage.c.The person living in Anchorage has $50.80/CPI more than the person in Minneapolis.d.The person living in Anchorage has $90.82/CPI more than the person in Minneapolis.

In 1983, a winter hat cost $12.95. Today, a winter hat costs $24.50. If the CPI is 219, what is the percent relation of the actual price of a winter hat to the expected price?a.The actual price is 39.3% higher than the expected price.b.The actual price is 15.8% higher than the expected price.c.The actual price is 13.6% lower than the expected price.d.The actual price is 29.8% lower than the expected price.

In 1983, a pair of jeans cost $66.35. If a pair of jeans costs $118.10 today, what is the CPI?a.152b.156c.178d.184

When the CPI is 185, an electric razor cost $57.81. What is the difference between the price of an electric razor in 1983 and the cost of an electric razor when the CPI is 207, to the nearest cent? a. $33.44 b. $31.25 c. $26.56 d. $6.88 Please select the best answer from the choices provided

The prices of consumer goods do not always exactly follow the CPI. The following chart shows several consumer items, along with their respective prices in 1983 and today.ItemPrice in 1983 ($)Current Price ($)Pair of boots67.45126.85Hair dryer15.2529.95Box of tissues1.152.25Toaster22.8544.25Using the prices shown on this chart, which of the following is a reasonable estimate of the current CPI?a.208b.195c.180d.173

A full-length mirror cost $144.99 when the CPI was 163. What will a full-length mirror cost when the CPI is 211, to the nearest cent?a.$305.93b.$214.59c.$187.68d.$88.95

In 1983, a hardcover dictionary cost $145.75. If the CPI is currently 209, what would a hardcover dictionary cost today? Round to the nearest cent.a.$354.75b.$304.62c.$254.75d.$209.00

A notebook costs $2.65 when the CPI is 182. In 1983, how many notebooks could you buy with $18?a.twentyb.fifteenc.twelved.six