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Answer the following questions: 1. In an economy a typical consumer purchases 4 notebooks and 5 pens. The price of these products is given in the table below for three years. Year Price of Notebook...

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Answer the following questions:

1.In an economy a typical consumer purchases 4 notebooks and 5 pens. The price of these products is given in the table below for three years.


YearPrice of NotebookPrice of Pen
2017$4$3
2018$5$3
2019$6$5


From the information given in the table above (assuming 2017 as the base year)calculate:


  • CPI fro 2017
  • CPI for 2018
  • CPI for 2019
  • Inflation rate for 2018
  • Inflation rate for 2019

2.How much of the following items would be worth in today's dollars if today's CPI is 260?

  • Popcorn that was sold for $7 in 2009 and the CPI in 2009 was 214
  • A cup that was sold for $15 in 2015 and the CPI in 2015 was 237


3.Refer to the table below for an imaginary economy of Flowerland.

YearReal GDP Population
201560 million45 million
201670 million50 million

Based on the information given in the table calculate;

  • Real GDP Per Person (or capita)
  • Percentage increase in the real GDP per person over the time period given and analyze.

4.In an imaginary economy of Cotton Land, 190,000 tons of cotton were produced in a day. The number of people who were involved in this production was 4500 and each of them worked for 8 hours. Further, there are 50 companies that employed these people in their processing plants. Calculate the productivity of this economy.


Answered Same Day Jul 14, 2021

Solution

Komalavalli answered on Jul 14 2021
154 Votes
Q1)
    Yea
    Price of Notebook
    Price of Pen
    Quantity of Notebook
    Quantity of Pen
    TE
    CPI
    Inflation Rate
    2017
    $4
    $3
    4
    5
    $31
    100
    Â 
    2018
    $5
    $3
    4
    5
    $35
    112.90
    13%
    2019
    $6
    $5
    4
    5
    $49
    158.06
    45%
Q2)
    Year
    Price of Popcorn
    CPI
    2009
    $7
    $214
    2015
    $15
    $237
    2021
    $16
    $260
Q3)
    Year
    Price of Popcorn
    CPI
    2009
    $7
    $214
    2015
    $15
    $237
    2021
    $16
    $260
Q4)
    Yea
    Real GDP
    Population
    Real GDP per capita
    Percentage change in real GDP per capita
    2015
    60000000
    45000000
    1.3
    Â 
    2016
    70000000
    50000000
    1.4
    5%
Percentage increase in the real GDP per person over the time period given is 5 percent. This indicates the country grows at the rate of 5%.
Q5)
Productivity = 190,000...
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