Macroeconomics
m.botaiban7
homework.docxa) Explain the difference between calculation of inflation through CPI and through deflator
b)
|
|
2018 |
2019 |
|
Consumption |
1200 |
1240 |
|
Personal transfer |
80 |
100 |
|
Investment |
250 |
300 |
|
Investment in real estate |
60 |
70 |
|
Government purchases |
200 |
210 |
|
Export |
180
|
190
|
|
Import |
160
|
180
|
|
GDP |
|
|
1. Calculate GDP for 2018 and 2019.
2. Calculate the GDP growth rate.
c)
|
Working age population |
|
|
Employment |
140302 |
|
Unemployment |
|
|
Unemployment rate |
9% |
|
Labor force |
|
|
Labor force participation rate |
64% |
|
Employment population ratio |
|
Fill in the blanks
d)
|
2010 (base year) |
2017 |
2018 |
||
|
Product |
Quantity |
Price |
Price |
Price |
|
Haircuts |
1000 |
2 |
2.5 |
3 |
|
Burger |
5000 |
3.5 |
4 |
3.5 |
|
Tablets |
1500 |
225 |
250 |
210 |
Consider a small economy producing only three goods. Use the information in the following table to calculate the inflation rate for 2018, as measured by the CPI.
1. Calculate CPI in 2017 and 2018
2. Calculate inflation and explain results
