Question 4 The following table presents the value of corn and beans harvested by a farmer in 2018 and 2019. Use the information to answer the questions that follow Product Corn Beans 2018 Value (GH) 12500 8600 2019 Value (GH) 13000 11000 a) Assuming the ratio of consumer price indices for the two years, CPI 2019 /CP12018 equals 0.9, what is the real value of the 2019 harvest? b) Distinguish between deflation and recession c) Explain how a price index may be constructed given the unit price and quantities of two products, A and B d) Assuming 2018 is the base year, has the real value of the farmer's harvest improved in 2019 as compared to 2018? e) The number of unemployed people in a country is 1.5 million. What is the unemployment rate if the number of people currently working (employed) is 12 million?

Question 4 The following table presents the value of corn and beans harvested by a farmer in 2018 and 2019. Use the information to answer the questions that follow Product Corn Beans 2018 Value (GH) 12500 8600 2019 Value (GH) 13000 11000 a) Assuming the ratio of consumer price indices for the two years, CPI 2019 /CP12018 equals 0.9, what is the real value of the 2019 harvest? b) Distinguish between deflation and recession c) Explain how a price index may be constructed given the unit price and quantities of two products, A and B d) Assuming 2018 is the base year, has the real value of the farmer's harvest improved in 2019 as compared to 2018? e) The number of unemployed people in a country is 1.5 million. What is the unemployment rate if the number of people currently working (employed) is 12 million?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 1SCQ: Table 22.4 shows the fruit prices that the typing college student purchased from 2001 to 2004. What...

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