Principles of Economics (Second Edition)
2nd Edition
ISBN: 9780393614077
Author: coppock, Lee; Mateer, Dirk
Publisher: W. W. Norton & Company
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Question
Chapter 21, Problem 5QFR
To determine
To evaluate:
The accuracy of the sentence which states that inflation in the United States last year was 0%.
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The attached table gives the purchases of a typical consumer in Colorado Springs. These consumers purchase only restaurant meals and parking. The year 2010 is the reference base period.
Is there inflation, deflation, or no change in prices in Colorado Springs from 2010 to 2011?
Search for the “World Economic Outlook Database” on the internet and locate the most recent version. Use this database to select inflation data (units of percentage change) for Germany, Japan, and the United States for the period 1990 to 2010. Construct a table of annual inflation rates for these countries. Now construct a graph using annual inflation rates on the vertical axis and the year on the horizontal axis. Plot the annual inflation rates from your table in three separate lines on the same graph. How would you compare the experiences of these three countries based on your graph?
In a sentence or two, evaluate the accuracy of the following statement, including a clear and precise statement of historical comparison: Inflation in the United States last year was 0%. This is close to the historical level.
Chapter 21 Solutions
Principles of Economics (Second Edition)
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