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 1988. Quarter 1 2 3 4 Price Index 57.82 58.27 59.22 59.99 Answer the following questions. Enter only the value, without the 96 sign or any other symbols. a. What is the annualized rate of inflation between the first and the second quarter of 1988? Express your answer in percentage rounded to the nearest first decimal (use the exact formula). b. How do you interpret the index of the first quarter of 1988: The price level is Click for List Click for List than that of 2012. c. Suppose the average hourly wage was $16.55 in the fourth quarter of 1988. Calculate the real wage in dollars of 2012. Round your answer to the nearest second decimal.

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 1988. Quarter 1 2 3 4 Price Index 57.82 58.27 59.22 59.99 Answer the following questions. Enter only the value, without the 96 sign or any other symbols. a. What is the annualized rate of inflation between the first and the second quarter of 1988? Express your answer in percentage rounded to the nearest first decimal (use the exact formula). b. How do you interpret the index of the first quarter of 1988: The price level is Click for List Click for List than that of 2012. c. Suppose the average hourly wage was $16.55 in the fourth quarter of 1988. Calculate the real wage in dollars of 2012. Round your answer to the nearest second decimal.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Economic Fluctuations, Unemployment, And Inflation

Section: Chapter Questions

Problem 12CQ

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