Discuss how does the GDP relate to CPI, and how the GDP and CPI contribute to inflation. Write a short report with NO more than 400 words. You should relate the findings based on the line graphs & charts for Ethiopia and Germany, attached in the images.
Discuss how does the GDP relate to CPI, and how the GDP and CPI contribute to inflation. Write a short report with NO more than 400 words. You should relate the findings based on the line graphs & charts for Ethiopia and Germany, attached in the images.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Discuss how does the GDP relate to CPI, and how the GDP and CPI contribute to inflation. Write a short report with NO more than 400 words. You should relate the findings based on the line graphs & charts for Ethiopia and Germany, attached in the images.
Transcribed Image Text:Line Graph for Ethiopia (CPI)
CPI
600
CPI
500
400
300
200
100
0
Line Graph for Germany (CPI)
120
115
110
105
100
95
90
85
80
75
70
ANOVA
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Years
SUMMARY OUTPUT
Summary Output for Ethiopia (CPI)
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations
Regression
Residual
Total
The CPI of Ethiopia from the Year 2002 to Year 2021
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Years
Intercept
X Variable 1
(Ethiopia)
df
0.942689
0.888663
0.882478
2.028119
The CPI of Germany from the Year 2002 to Year 2021
20
SS
1
18
19
MS
590.9612 590.9612 143.672
74.0388 4.113267
665
F
Significance F
5.14E-10
Coefficients Standard Errort Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
2004.156
0.762275 2629.177 1.02E-51
2002.555 2005.757 2002.555 2005.757
0.035993 0.051292 0.035993
0.051292
0.043642
0.003641 11.98632 5.14E-10
Transcribed Image Text:Line Graph for Ethiopia (GDP)
GDP
GDP
1.2E+11
1E+11
8E+10
6E+10
AN OVA
4E+10
2E+10
Line Graph for Germany (GDP)
0
4.5E+12
4E+12
3.5E+12
3E+12
2.5E+12
2E+12
1.5E+12
1E+12
5E+11
0
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations
Regression
Residual
Total
SUMMARY OUTPUT (Ethiopia)
Intercept
X Variable 1
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Summary Output for Ethiopia (GDP)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Years
0.977075562
0.954676654
0.952158691
1.294003797
The GDP of Ethiopia from the Year 2002 to Year 2021
df
20
1
18
19
SS
The GDP of Germany from the Year 2002 to Year 2021
634.86
30.14002
665
MS
0.506837
8.65E-12
634.86
1.674446
Coefficients Standard Errort Stat
2003.397323
1.69E-10
Years
3952.748
19.47168
379.1463
P-value
6.63E-55
1.53E-13
Significance F
1.53E-13
Lower 95% Upper 95%
2002.332
1.50E-10
2004.462
1.87E-10
Lower 95.0% Upper 95.0%
2002.332
2004.462
1.50E-10
1.87E-10
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