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A country devaluates its currency causing inflation, which index will estimate inflation more in the short run between cpi and gdp deflator?
Answer on Question#37432 - Economics - Macroeconomics The GDP deflator and CPI diverge in a few ways. The GDP deflator includes goods and services produced domestically, while the CPI includes...
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Calculating CPI, real, and per capita terms.
Year: 2000, 2001, 2002.
Data: 847, 902, 911.
GDP ($B): 562, 607, 619.
Pop (m): 183, 201, 232.
Calculate CPI 2000 for 2002.
Calculating CPI, real, and per capita terms. Year: 2000, 2001, 2002. Data: 847, 902, 911. GDP ($B): 562, 607, 619. Pop (m): 183, 201, 232. CPI(2000) = 100, CPI(2001) =...
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Contrast the nominal GDP and real GDP. Why do economists consider real gdp as a more reliable measure for comparing changes in the production level over a series of years?
Nominal GDP is the total gross national product evaluated at current market prices. Real GDP is gross national product calculated using the prices of a selected base period . Economists...
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If the base year prices are used during the measurement of GDP, then the.................is obtained.
1) Current GDP
2) Gross national product
3) Real GDP
4) Nominal GDP
3) Real GDP
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1. How is the Real exchange rate of seven years calculated?
2. How is the nominal and real effective exchange rate index calculated?
3. how is the nominal exchange rate of seven years calculated?
1. The Real exchange rate of seven years is nominal exchange rate multiplied by the change in price level. 2. Effective exchange rate of currency j = Normalized exchange rate...
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Suppose that the nominal interest rate and expected inflation both increase by 3%. These equal increases in the nominal interest rate and expected inflation will cause:
this will keep the real interest rate at the same level. According to the Fisher effect, when the real interest rate is expressed as the difference between the size of...
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nominal gdp when real gdp is 2,500 and gdp deflator is 140
Nominal GDP=real GDP*deflator/1002500*140/100=3500Nominal GDP=3500
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Providing relevant data, describe the trends in inflation, the current account as a percentage of GDP, the unemployment rate, and the GDP growth rate in the USA during the period 2009-2018.
inflationAccording to the Bureau of Labor Statistics consumer price index, prices in 2018 are 19.78% higher than average prices since 2009. The U.S. dollar experienced an average inflation rate of 1.65% per year during...
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In year 1, your anual income is p 45, 000.00, and CPI is 143.6; in year 2, your anual income is 51, 232,and the CPI is 150.7. Has your real income risen, fallen, or remained constant? Explained
The real income (RI) is calculated as nominal income/CPI×100%In year 1: RI = ($45,000/143.6) × 100 = $31,337In year 2: RI = ($51,232/150.7) × 100 = $33,996So, my real income...
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Suppose a country's CPI increased from 2.1 to 2.3 in the course of 1 year. Use this fact to compute the rate of inflation for that year. Why might the CPI overstate the rate of inflation?
ANSWERThe percentage change in the CPI is given by;CPI = CHANGE IN THE CPI \ INITIAL CPI * 100% = (2.3 - 2.1) \ (2.1)* 100% = 9.52%
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