Country X Country Y Country Z 1 YEAR 1 YEAR AGO 1 YEAR AGO INDICATOR NOW NOW NOW AGO 7.5% 5.6% 7.9% 9.3% 5.5% 5.4% Unemployment rate GDP growth rate 5.1% 1.9% 0.3% -1.2% 3.5% 3.7% Inflation rate 1.1% 0.2% 2.1% 0.0% 2.4% 2.3% 1. Choose one of the countries above and describe if the economy is healthy or unhealthy? How do you know? Country_economy is (healthy or unhealthy) because... 2. Which country would be the best option to move to find a new job? Why? Country would be the best option to move to because... 3. Which stage of the business cycle is each country in (contraction, expansion)? Defend Your thinking. D Focus

Country X Country Y Country Z 1 YEAR 1 YEAR AGO 1 YEAR AGO INDICATOR NOW NOW NOW AGO 7.5% 5.6% 7.9% 9.3% 5.5% 5.4% Unemployment rate GDP growth rate 5.1% 1.9% 0.3% -1.2% 3.5% 3.7% Inflation rate 1.1% 0.2% 2.1% 0.0% 2.4% 2.3% 1. Choose one of the countries above and describe if the economy is healthy or unhealthy? How do you know? Country_economy is (healthy or unhealthy) because... 2. Which country would be the best option to move to find a new job? Why? Country would be the best option to move to because... 3. Which stage of the business cycle is each country in (contraction, expansion)? Defend Your thinking. D Focus

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 27CTQ: Describe a situation, either a government policy situation, an economic problem, or a private sector...

See similar textbooks

Similar questions

How does indexing wage contracts to inflation help workers?
Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of 20,000. However, if the inflation rate is 6 per year, how much buying power will that 20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.
a) The following table shows the average market basket prices of an Asian country for several years. Year Market Basket Price ($) 2008 340 2018 420 2019 455 2020 500 I. Using the table above, calculate the Consumer Price index for 2018, 2019 and 2020 if the base year is 2008. II. Based on the above information, calculate the inflation rate in the year 2020 b) The following table shows the national account information of an African Country. Item $(millions) Household Consumption 1,250.00 Depreciation of capital goods 120.00 Factor income received from abroad 580.00 Government investment 824.00 Exports 123.00 Imports 390.00 Factor income paid to abroad 225.00 Gross private domestic investment 594.00 Government Consumption 447.00 Transfer Payments…
The consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price index of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good Z in 2018, 2019, and 2020. Calculate the percentage change in index between 2018 and 2019 and again between 2019 and 2020. What is rate of inflation/deflation between 2019 and 2020? GOOD QUANTITY CONSUMED 2018 PRICES 2019 PRICES 2020 PRICES X 100 Rs. 10.00 Rs.10.50 Rs. 10.75 Y 150 Rs. 10.50 Rs. 20.00 Rs. 20.00 Z 25 Rs. 30.00 Rs. 30.25 Rs. 30.00 In each case of following cases, does the increase in prices affect CPI, GDP deflator, or both in Pakistan? Analyze and Justify your answer. (Maximum 150 words) The price of imported Belgian chocolate has increased. The price of imported equipment used in industrial level ice-cream production has…
The data below are from the economies of Ishgandar and Nonburmia. Please help with question d. Question c included for context. Ishgandar Nonburmia Year Population GDP Deflator Nominal GDP Year Population GDP Deflator Nominal GDP 1 5 100 $200 1 10 100 $300 2 5 125 $375 2 10 110 $440 (c) Calculate each of the following in Year 2. Show your work. (i) The inflation rate in Ishgandar (ii) The inflation rate in Nonburmia (d) Based on your answer to part (c), if the nominal interest rate is the same for both economies in Year 2, which economy experiences the higher real interest rate in Year 2 ? Explain.
The data below are from the economies of Ishgandar and Nonburmia. Ishgandar Nonburmia Year Population GDP Deflator Nominal GDP Year Population GDP Deflator Nominal GDP 1 5 100 $200 1 10 100 $300 2 5 125 $375 2 10 110 $440 (c) Calculate each of the following in Year 2. Show your work. (i) The inflation rate in Ishgandar (ii) The inflation rate in Nonburmia
Now you see what the BLS economist do, except with a more complex basket of goods. Now try to construct an index and determine the inflation rate on your own. The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the “basket” of fruit with the quantities shown in column 2? (5 points) Items Qty. 2001 2002 2003 2004 Price Amount Spent Price Amount Spent Price Amount Spent Price Amount Spent Apples 10 $0.50 $0.75 $0.85 $0.88 Bananas 12 $0.20 $0.25 $0.25 $0.29 Grapes 2 $0.65 $0.70 $0.90 $0.95 Raspberries 1 $2.00 1.9 2.05 2.13 $2.13 Total Construct the price index for a “fruit basket” in each year using 2003 as the base year. (5 points) Compute the inflation rate…
An economy is comprised of only two goods. Using 2019 and the base year, what is the rate of inflation? Movie Pizza Tickets Price, 2019 10 5 Quantity, 20 100 2019 Price, 2020 11 7 Quantity, 23 110 2020 11% 21% 31% 41%
The GDP in China is $12.2 trillion. The rate of inflation is 2.5%. If the population of China is 1,421,021,000, find the per capita GDP in this country. per capita GDP = $ [?] Round to the nearest hundredth. CHID Enter 123 11/25/20
Year 1 2 3 Nominal GDP 4531 4664 Use the information above, calculate X. GDP Deflator 113 Real GDP 4558 GDP Deflator Inflation: Rate (%) 5 0 X
Arturia Year 1 2 G Nominal GDP Population GDP Deflator $100 $240 100 120 20 G 25 Ringberg Year Nominal 1 2 (a) Calculate each of the following for Year 2. Show your work. (1) Real GDP per capita for Arturia (ii) Real GDP per capita for Ringberg O (c) Calculate each of the following in Year 2. Show your work. (1) The inflation rate in Arturia (ii) The inflation rate in Ringberg $200 GDP Deflator $300 C GDP Population с 100 150 25 (b) If Arturia and Ringberg have the same velocity of money in Year 2, which nation must have the higher money supply in Year 2? Explain. 25 (d) Based on your answer to part (c), if the nominal interest rate is the same for both nations in Year 2, which nation experiences the higher real interest rate in Year 2? Explain. (e) Ringberg produces consumer goods and capital goods. While maintaining full employment, Ringberg decides to allocate more resources to the production of consumer goods. What will be the effect on the long-run economic growth rate in…
Change in GDP deflator: 36% Change in CPI : 35.0003% Although both GDP deflator and CPI are both measures of inflation, why are the percentages different? even if its little?