In a small, agricultural nation, consumers buy only steak and potatoes. In 2009, the base year, the typical consumer spent $potatoes on strawberries and $100 on steak. The price of potatoes is $1 and the price of steak is $2 in 2009. In 2009, the price of potatoes is $2 and the price of steak is $1. The CPI for 2010 is
A) 25 percent.
B) 100.
C) 110.
D) 80.
E) 125.
Correct Answer:
Verified
Q4: Suppose that residents of France have seen
Q5: Joe buys chicken and beef. If the
Q7: If the cost of the CPI market
Q8: If your nominal income is $80,000 and
Q10: The real interest rate equals the
A)nominal interest
Q11: If the nominal wage is $30 in
Q12: For the purpose of measuring the cost
Q13: The GDP deflator measures
A)the price level.
B)nominal GDP.
C)the
Q14: The CPI is reported once every
A)quarter.
B)other year.
C)year.
D)week.
E)month.
Q17: To measure the CPI,the BLS economic assistants
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