Abby consumes only apples. Year 1 Year 2 red $1 each $2 each green $2 each...

Abby consumes only apples.

	Year 1	Year 2
red	$1 each	$2 each
green	$2 each	$1 each

In year 1 Abby buys 10 red apples and in Year 2 Abby buys 10 green apples.

Compute a CPI for apples for each year. Assume that year 1 is the base year in which the consumer basket is fixed. How does your index change from year 1 to year 2? (at least five sentences to explain)

Suppose Abby is happy eating red or green apples. How much has the true cost of living increased for Abby? (at least five sentences to explain)

State and explain 3 differences between GDP deflator and CPI

The Bureau of Labor Statistics announced that in January 2013, of all adult Americans, 143,322,000 were employed, 12,332,000 were unemployed, and 89,008,000 were not in the labor force. Use this information to calculate: the adult population, the labor force, the labor force participation rate, and the unemployment rate.

Expert Solution

Rahul Sunny answered 2 years ago

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