Interest rate Inflation rate 1996-2000 2001-2005 1.5% 1.4% -1.9% -0.9% 2006-2010 1.3% -0.5% 2011-2015 1.2% 1.6% The table shows the nominal interest rate and the annual inflation rate (the GDP deflator) of Japan in the period 1996-2015 (Source: World Bank). Based on this information, which of the following statements are correct? The real interest rate in 1996-2000 was -0.4%. Japan's real interest rate has been rising consistently over this period. Japan's real interest rate turned from being positive to negative during the period. The real interest rate has been falling faster than the nominal interest rate.

because most businesses do not experience inflation as reflected by the market basket used to measure the CPI, a different index is used for provider of goods and services. which price index generally provides a better measurement of the inflation effects for particular business or for the purchase of particular equipment than the CPI? A) Business B) distributor C) manufacturer D) producer E) provider F) purchaser G) retail H) seller I) supplier J) vendor K) none of these

Suppose, in the base year, a typical market basket purchased by an urban family costs $250.  In Year 1, the same market basket cost $950.  What is the consumer price index (CPI) for Year 1? If the same market basket costs $1000 in Year 2, what is the CPI for Year 2? What was the Year 2 rate of inflation?

Use the information in the table to calculate the %change in prices (inflation rate), using a chain-weighted methodology. Q1=2 Q2=3 Year (t) P1 E1 P2 E2 E(t) 2017 $1.05 $2.00 2018 $1.10 $2.10 2019 $1.10 $2.15 2020 $1.15 $2.15 Price Index Inflation Rate 2017 2018 2019 2020 Question 1: What is the inflation rate for 2019? a) 1.76% b) 1.16% c) -0.60% d) -3.02

Two countries, Country N in North America and Country S in South America, have the same CPI basket. Year 2000 is the CPI base year for both countries. In that year, the cost of CPI basket in Country N is $N100, and in country S is $s1000, where $N and $s are their respective currencies. Twenty years later, in 2020, the CPI in Country N rose to 240, and in Country S to 360. a) In the ideal world in which the purchasing power parity (PPP) holds true, what should be the nominal exchange between $s and $N in Year 2000 and in Year 2020. Show calculations and explain the change in nominal exchange rate. b) Suppose in reality, the nominal exchange rage between the two currencies is 18 $s per $N in Year 2020. First, explain why the nominal exchange rate differs from your calculation above. Second, calculate the real exchange rate between the two countries, and explain the meaning of your calculated result. c) During Year 2021, the growth of the real GDP in the two countries are, 0% in country…

Assume that this economy produces only two goods Good X and Good Y. If year 2 is the base year, the value for this economy's GDP deflator in year 3 is:   A-              = 120 B-               = 123   C-              =  135    D-      = 140     Assume that this economy produces only two goods Good X and Good Y. If year 2 is the base year, the value for this economy's inflation rate between year 2 and year 3 is: A-              = 1,8 ./. B-               = 1,2./.   C-              =    1,65 ./. D-      =2./.

The following table shows the average nominal interest rates on six-month Treasury bills between 2014 and 2018, which determined the nominal interest rate that the U.S. government paid when it issued debt in those years. The table also shows the inflation rate for the years 2014 to 2018. (All rates are rounded to the nearest tenth of a percent.)   Year      Nominal Interest Rate      Inflation Rate                  (Percent)                   (Percent) 2014           0.1                         1. 6 2015         0.2                            0.1  2016          0.5                          1.3 2017          1.1                         2.1 2018         2.1                           2.4       On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years.     According to the table, in which year did buyers of six-month Treasury…

Here are some recent data on the US consumer price index:  Year  CPI  Year  CPI  Year  CPI  2016  240.0  2011  224.9  2006  201.6  2015  237.0  2010  218.1  2005  195.3  2014  236.7  2009  214.5  2004  188.9  2013  233.0  2008  215.3  2003  184.0  2012  229.6  2007  207.3  2002  179.9    Compute the inflation rate of each year 2003-2016 and determine which were years of inflation. In which years did deflation occur? In which years did disinflation occur? Was there hyperinflation in any year?

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Question 1: In an economy, there are only two goods (Cars and cycles) produced. The data for last three years is given in the below table. Calculate the nominal and real GDP of three years and then find the GDP deflator for all the three years. Find year on year (YoY) inflation for 2018 and 2019. Note: the base year for this economy is given as 2017.   year Price of Car              (AED) Number of Car Price of cycle (AED) Number of cycle 2017 1000 10 200 900 2018 1200 15 210 1000 2019 1500 25 250 1500       Question 2: Explain the role of fiscal and monetary policy in an economy facing a recession. Use appropriate graph to justify your answer