Question 2: a. In Fairy land a typical family of 15 will purchase these items in any given year: 50 lbs of Sugar 75 barrels of water Year 2021 2022 2023 Price of Water 5 Price of Sugar 20 5.05 5.20 22 25 1. Calculate the annual total cost of the basket. (3 marks) 2. Calculate the Consumer Price Index for each year using 2021 as the base year. (3 marks) 3. Calculate the inflation rate for each year. (3 marks) 4. Deflate each year's CPI. (6 marks) b. Using a Caribbean country of your choice, using trend analysis for a five (5) year period examine the trend any analyze the main causes of inflation or deflation within the selected period. (10 marks) Question 3: Using the following information, compile the Supply and Use table and the Production account for Bestland: a. The agriculture sector imported Dasheen $6000 and 50% is used by the farmers. b. Household purchased 10% from the agriculture sector while the Manufacture sector purchased 30% to produce Dasheen Chips. A production tax of $440 was applied to the manufacturing sector c. The remaining percentage was bought evenly by the tourism and the private sector. d. Wages paid to workers in the manufacturing sector $700 Goods Favorland purchased chips from Bestland worth $2000 (18 marks)
Question 2: a. In Fairy land a typical family of 15 will purchase these items in any given year: 50 lbs of Sugar 75 barrels of water Year 2021 2022 2023 Price of Water 5 Price of Sugar 20 5.05 5.20 22 25 1. Calculate the annual total cost of the basket. (3 marks) 2. Calculate the Consumer Price Index for each year using 2021 as the base year. (3 marks) 3. Calculate the inflation rate for each year. (3 marks) 4. Deflate each year's CPI. (6 marks) b. Using a Caribbean country of your choice, using trend analysis for a five (5) year period examine the trend any analyze the main causes of inflation or deflation within the selected period. (10 marks) Question 3: Using the following information, compile the Supply and Use table and the Production account for Bestland: a. The agriculture sector imported Dasheen $6000 and 50% is used by the farmers. b. Household purchased 10% from the agriculture sector while the Manufacture sector purchased 30% to produce Dasheen Chips. A production tax of $440 was applied to the manufacturing sector c. The remaining percentage was bought evenly by the tourism and the private sector. d. Wages paid to workers in the manufacturing sector $700 Goods Favorland purchased chips from Bestland worth $2000 (18 marks)
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 34P: The total price of purchasing a basket of goods in the United Kingdom over four years is: year...
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Transcribed Image Text:Question 2:
a. In Fairy land a typical family of 15 will purchase these items in any given year:
50 lbs of Sugar
75 barrels of water
Year
2021
2022
2023
Price of Water
5
Price of Sugar
20
5.05
5.20
22
25
1. Calculate the annual total cost of the basket. (3 marks)
2. Calculate the Consumer Price Index for each year using 2021 as the base year. (3 marks)
3. Calculate the inflation rate for each year. (3 marks)
4. Deflate each year's CPI. (6 marks)
b. Using a Caribbean country of your choice, using trend analysis for a five (5) year period
examine the trend any analyze the main causes of inflation or deflation within the
selected period. (10 marks)
Question 3:
Using the following information, compile the Supply and Use table and the Production
account for Bestland:
a. The agriculture sector imported Dasheen $6000 and 50% is used by the farmers.
b. Household purchased 10% from the agriculture sector while the Manufacture sector
purchased 30% to produce Dasheen Chips. A production tax of $440 was applied to
the manufacturing sector
c. The remaining percentage was bought evenly by the tourism and the private sector.
d. Wages paid to workers in the manufacturing sector $700
Goods Favorland purchased chips from Bestland worth $2000
(18 marks)
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