Question
In: Economics
4. The CPI in year 1 = 120, the CPI in Year 2 = 144. Calculate...
4. The CPI in year 1 = 120, the CPI in Year 2 = 144. Calculate the amount of inflation or deflation. Why is this important?
Solutions
Expert Solution
Inflation in simple terms is a general rise of price level of goods and services in economy over a given period of time
Deflation is just opposite of inflation
When there is negative inflation then deflation is there
It is very important tool for telling that where the economy is going, how to the base year price level of goods and services have been risenso that for the decision can be taken
Also form in economy the primary fiscal goal is to control it so that burden of debt can be reduced
If an economy suffers from excessive inflation then the situation is called hyper inflation
Hyperinflation situation can be best seen in the Venezuela where due to inflation, the currency loses its purchasing power as compared to other foreign currencies
Rahul Sunny answered 6 months agoRelated Solutions
Consider the quarterly electricity production for years 1-4: Year 1 2 3 4 Q1 99 120...
Consider the quarterly electricity production for years
1-4:
Year 1 2 3 4
Q1 99 120 139 160
Q2 88 108 127 148
Q3 93 111 131 150
Q4 111 130 152 170
(a) Estimate the trend using a centered moving average.
(b) Using a classical additive decomposition, calculate the
seasonal component.
(c) Explain how you handled the end points. - PLEASE
PROVIDE ANSWER C !
Note: Explain all the steps and computations
Consider the quarterly electricity production for years 1-4: Year 1 2 3 4 Q1 99 120...
Consider the quarterly electricity production for years
1-4:
Year 1 2 3 4
Q1 99 120 139 160
Q2 88 108 127 148
Q3 93 111 131 150
Q4 111 130 152 170
(a) Estimate the trend using a centered moving average.
PLEASE PROVIDE ANSWER A AND PLOT THE TREND ON A
SCATTER PLOT
(b) Using a classical additive decomposition, calculate the
seasonal component.
(c) Explain how you handled the end points.
Note: Explain all the steps and computations
Consider the quarterly electricity production for years 1-4: Year 1 2 3 4 Q1 99 120...
Consider the quarterly electricity production for years 1-4:
Year 1 2 3 4 Q1 99 120 139 160 Q2 88 108 127 148 Q3 93 111 131 150
Q4 111 130 152 170 (a) Estimate the trend using a centered moving
average. (b) Using a classical additive decomposition, calculate
the seasonal component. (c) Explain how you handled the end points.
Note: Explain all the steps and computations in your own words and
it should be typed on Microsoft word .
Consider the quarterly electricity production for years 1-4: Year 1 2 3 4 Q1 99 120&nbs
Consider the quarterly electricity production for years 1-4:
Year 1
2
3
4
Q1 99 120
139 160
Q2 88 108
127 148
Q3 93 111
131 150
Q4 111 130
152 170
(a) Using a classical additive decomposition, calculate the
seasonal component.
(b) Explain how you handled the end points.
(c) Estimate the trend using a centered moving
average.
Suppose the fixed basket of goods used to calculate the CPI consists of 4 units of...
Suppose the fixed basket of goods used to calculate the CPI
consists of 4 units of good A, 3 units of good B, and 2 units of
good C. From year 1 to year 2 the prices of the goods changed as
shown in the table. Year 1 is the base year. Price in year 1 Price
in year 2 Good A $2.20 $2.53 Good B $3.40 $3.74 Good C $5.60 $5.88
The price of good A changed by %,...
If the CPI = 200 this year and rises to CPI = 210 the next year...
If the CPI = 200 this year and rises to CPI = 210 the next year
this means that inflation increased by 10%.
1. How CPI and cost of living are related? 2. Can we compare CPI and GDP...
1. How CPI and cost of living are related?
2. Can we compare CPI and GDP Deflator to compare inflation?
3. How can we compare 1980 property rents to today’s property
rents?
4. When the real and nominal interest rates are or become
equal?
5. Why CPI is may not be a good measure of Cost of Living?
1. The CPI is 1.00 in year one and 1.25 in year two. If the nominal...
1. The CPI is 1.00 in year one and 1.25 in year two. If the
nominal wage is $20 in year one and a contract calls for the wage
to be indexed to the CPI, what will be the nominal wage in year
two?
2. If in the economy, business saving equals $220 billion,
household saving equals $35 billion and government saving equals
–$150 billion, what is the value of private saving?
3. In country Alpha with 400 million people...
Calculate the variance of the following returns. Year Return 1 0.17 2 0.06 3 0.1 4...
Calculate the variance of the following
returns.
Year Return
1 0.17
2 0.06
3 0.1
4 0.13
5 0.08
Enter the answer with 4 decimals, e.g. 0.1234.
Taxpayer Form 1 Form 2 Form 3 Form 4 1 109 115 126 120 2 98...
Taxpayer
Form 1
Form 2
Form 3
Form 4
1
109
115
126
120
2
98
103
107
108
3
29
27
53
38
4
93
95
103
109
5
62
65
67
64
6
103
107
111
128
7
83
82
101
116
8
122
119
141
143
9
92
101
105
108
10
107
113
127
113
11
103
111
111
108
12
54
64
67
62
13
141
145
142
160
14
92
94
95
102
15...
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