Question 2 (1 point) Si un petit pays a un PIB nominal actuel de 20 milliards de dollars et un déflateur du PIB de 50, quel est son PIB réel? a) $100 milliards de dollars b) $40 milliards de dollars c) $10 milliards de dollars d) $4 milliards de dollars

With in 1 or 2 percentage points, what has the U.S. inflation rate been during the last 20 years? Draw a graph to show the data.

Why do you mink the U.S. experience with inflation over the last 50 years has been so much milder than in many other countries?

If you receive 500 in simple interest on a loan that you made for 10,000 for five years, what was the interest rate you charged?

Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of 20,000. However, if the inflation rate is 6 per year, how much buying power will that 20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.

Imagine that you are in the position of buying loans in the secondary market (that is, buying the right to collect the payments on loans) for a bank or other financial services company. Explain why you would be willing to pay more or less for a given loan If: The borrower has been late on a number of loan payments Interest rates In the economy as a whole have risen since the bank made the loan The borrower Is a firm that has just declared a high level of profits Interest rates in the economy as a whole have fallen since the bank made the loan

Imagine that you are a barber in a world without money. Explain why it would be tricky to obtain groceries, clothing, and a place to live.

What is a dividend?

How does indexing wage contracts to inflation help workers?

How do economists use a basket of goods and services to measure the price level?