The nominal interest rate is equal to ? (a).Real interest +inflation (b). Real interest *inflation (c). Real interest -inflation (d)Real interest / inflation
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Q: real interest rate
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The nominal interest rate is equal to ?
(a).Real interest +inflation
(b). Real interest *inflation
(c). Real interest -inflation
(d)Real interest / inflation
2.
Net investment is ......?
(a). Gross investment minus household investment.
(b). Gross investment minus government investment
(c). Gross investment minus capital consumption allowance.
(d). Gross investment minus inflation
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- Quantity Quantity Item (2018) Price (2018) (2019) Price (2019) Magazines 400 $5.00 450 $4.50 Movie tickets 50 $6.00 200 $8.00 Pizzas 100 $10.00 120 $10.50 The data in the table above shows the consumption by families in an economy. The year 2018 is the reference base period. Based on the table above, between 2018 and 2019, the inflation rate in this country was 2.5 percent. 98.5 percent. -1.5 percent. 105.1 percent. -2.5 percent.The consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price index of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good Z in 2018, 2019, and 2020. Calculate the percentage change in index between 2018 and 2019 and again between 2019 and 2020. What is rate of inflation/deflation between 2019 and 2020? GOOD QUANTITY CONSUMED 2018 PRICES 2019 PRICES 2020 PRICES X 100 Rs. 10.00 Rs.10.50 Rs. 10.75 Y 150 Rs. 10.50 Rs. 20.00 Rs. 20.00 Z 25 Rs. 30.00 Rs. 30.25 Rs. 30.00 In each case of following cases, does the increase in prices affect CPI, GDP deflator, or both in Pakistan? Analyze and Justify your answer. (Maximum 150 words) The price of imported Belgian chocolate has increased. The price of imported equipment used in industrial level ice-cream production has…A consumer expenditure survey reports the following information on consumer spending: 2020 2021 Price Quantity Price Quantity Product (1) $10 7 $10 7 Product (2) $6 10 $8 12 Product (3) $12 5 $14 10 a) Using 2020 as the base year, by how much does a "cost of products" index increase between 2020 and 2021? b) Calculate the inflation rate between 2020 and 2021, using the CPI you calculated in (a)
- True or false 1- Nominal GDP is normally not corrected by the inflation rate. 2- PPI (Producer price index) measures the cost of basket bought by firms. 3- A correction for inflation is especially important when looking at data on interest rate. 4- Unpaid workers in a family business are normally considered as unemployed.Quantity (2015) Price (RM) (2015) 3.00 Quantity (2016) 22 Price (RM) (2016) Item Loaves of bread Jugs of soda 20 4.00 20 2.00 30 1.50 1. The tables above give the purchases of an average consumer in a small economy. Suppose 2015 is the reference base period. b) What is the CPI in 2015? ( c) What is the CPI in 2016? d) What is the inflation rate in 2016? Explain(a) The Consumer Price Index (CPI) in December 1980 was 86.3. The Consumer Price Index as of December 2021 is 278.8. If the minimum wage would have increased at the same rate as the CPI from 1980 to 2021, what would the hourly minimum wage be in 2021? (b) Using the CPI, if the CPI in the base year 1982-1984 is 100 and the CPI in 1980 is 86.3, then what would the real minimum wage be in 1981? (c) Using the CPI, if the CPI in the base year 1982-1984 is 100 and the CPI in 2021 is 278.8, then what would t he real minimum wage be in 2021?
- B. Calculate for the Inflation Rate on the given period. 1. At the end of 2012, the CPI equaled 698. At the end of 2013, the CPI equals 998. 2. At the end of 2013, the CPI equaled 725. At the end of 2014, the CPI equals 955. Calculate inflation rate over this period.Suppose the Consumer Price Index in 2019 is 131.9, with 2002 as the base year. (a) What is the purchasing power of the dollar in 2019 compared to 2002? (b) What is the real income, relative to 2002, of a wage earner whose income amounted to 62,900 in 2019?urgent , no plagiarism The following statements refer to the CPI and the GDP deflator. Which one is CORRECT? The CPI rises when the price of intermediate goods purchased by firms increases. The inflation rate calculated using the CPI is always higher than that obtained with the GDP deflator. The CPI takes into account the prices of all goods and services produced in an economy. The GDP deflator does not reflect the rise in prices on imported final goods
- MCQS 1- Which of the following is NOT a component of Gross Domestic product? Investment. Consumption. Tax Government Expenditure 2- ………… is the market value of all final goods & services produced within a country in a given period of time. Inflation Multiplier Gross Domestic Product Gross National Product 3- ………………... refers to the measure of the overall cost of the goods and services bought by a typical consumer. Producer price index Nominal interest rate Consumer price index Inflations please answer all mcqsIf intermediate consumption is $40 million and value of output is $50 million Find the value addedCalculate (a). The Gross national income at factor cost (b). Net national income