MANKIW: PRINCIPLES OF MICROECONOMICS
8th Edition
ISBN: 9781337801775
Author: Mankiw
Publisher: CENGAGE L
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Chapter 18, Problem 9PA
Subpart (a):
To determine
To calculate: The output, wage, and labor share.
Subpart (b):
To determine
To calculate: The output, wage, and labor share.
Subpart (c):
To determine
To calculate: The output, wage, and labor share.
Subpart (d):
To determine
To calculate: The output, wage, and labor share.
Subpart (e):
To determine
To calculate: The output, wage, and labor share.
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not use ai please
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In this question, you will test relative purchasing parity (PPP) using the data. Use yearly
data from FRED website
from 1971 to 2020: (i) The Canadian Dollars to U.S. Dollar Spot
Exchange Rate (ER) (ii) Consumer price index for Canada (CAN_CPI), and (iii) Consumer price
index for the US (US_CPI). Inflation is measured by the consumer price index (CPI). The relative
PPP equation is:
AE CAN$/US$
ECAN$/US$
=
π CAN - πUS
Submit the Excel sheet that you worked on.
1. First, compute the percentage change in the exchange rate (left-hand side of the equation).
Caculate the variable for each year from 1972 to 2020 in Column E (named Change_ER) of
the Excel sheet. For example, for 1972, compute
E3: (B3-B2)/B2).
ER1972 ER1971
ER 1971
(in Excel, the formula in cell
Chapter 18 Solutions
MANKIW: PRINCIPLES OF MICROECONOMICS
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