Question

SHUT UP lead to the answers. 1 Name a US government agency that publishes data of CPI and unemployment and provide a URL link for each of the two variables that leads you to the data. 2. Calculate the inflation rate between year a) 1999 and 2000, b) 2000 and 2001 given the following CPI: CPI (1999) 89, CPI (2000)=100, CPI (2001)=107

Answer 1

As per HOMEWORKLIB RULES, in case of multiple questions only the first 4 subparts are to be answered

Kindly ask rest of the questions in a separate post.

1)

The US Bureau of Labor Statistics publishes data on CPI and unemployment for the US

Providing links to external websites is not allowed under HOMEWORKLIB RULES and hence I cannot provide links here

2)

Inflation = % change in CPI

(a) Inflation 1999-2000: (100-89)/89 = 0.1236 or 12.36%

(b) Inflation 2000-2001: (107-100)/100 = 0.07 or 7%

3)

GDP Deflator = (NGDP / RGDP) x 100

GDP Deflator = (3200/3600) x 100

GDP Deflator = 88.88

4)

Real income = (Nominal income / CPI) x 100

Real income in Maryland: (5100/110) x 100 = $4636.36

Real income in Texas: (5000/100) x 100 = $5000

Thus, job must be taken in Texas as it gives a higher real income