Question 4 The following table presents the value of corn and beans harvested by a farmer in 2018 and 2019. Use the information to answer the questions that follow Product Corn Beans 2018 Value (GH) 12500 8600 2019 Value (GH) 13000 11000 a) Assuming the ratio of consumer price indices for the two years, CPI 2019 /CP12018 equals 0.9, what is the real value of the 2019 harvest? b) Distinguish between deflation and recession c) Explain how a price index may be constructed given the unit price and quantities of two products, A and B d) Assuming 2018 is the base year, has the real value of the farmer's harvest improved in 2019 as compared to 2018? e) The number of unemployed people in a country is 1.5 million. What is the unemployment rate if the number of people currently working (employed) is 12 million?

Question 4 The following table presents the value of corn and beans harvested by a farmer in 2018 and 2019. Use the information to answer the questions that follow Product Corn Beans 2018 Value (GH) 12500 8600 2019 Value (GH) 13000 11000 a) Assuming the ratio of consumer price indices for the two years, CPI 2019 /CP12018 equals 0.9, what is the real value of the 2019 harvest? b) Distinguish between deflation and recession c) Explain how a price index may be constructed given the unit price and quantities of two products, A and B d) Assuming 2018 is the base year, has the real value of the farmer's harvest improved in 2019 as compared to 2018? e) The number of unemployed people in a country is 1.5 million. What is the unemployment rate if the number of people currently working (employed) is 12 million?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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