Year | Quantity Goods | Quantity Services | Price Goods | Price Services |
2010 | 2000 | 6200 | 2 | 1.5 |
2011 | 2200 | 6400 | 2.11 | 1.65 |
2012 | 2500 | 6750 | 2.15 | 1.65 |
2013 | 2505 | 7100 | 2.3 | 1.9 |
2014 | 2700 | 7300 | 2.35 | 2 |
2015 | 3050 | 8000 | 2.5 | 2 |
2016 | 3100 | 8450 | 2.65 | 2.1 |
2017 | 3500 | 8650 | 2.7 | 2.15 |
Assume that consumers’ typical consumption basket of goods and services is exactly represented by the (relative) quantities of goods and services produced in 2015.
a. Calculate the implied CPI in each year, based on 2015 consumption quantities.
b. Calculate the CPI inflation rate for each year and the annual average inflation rate. How do these compare to the annual and annual average inflation rate of the GDP deflator? What is the correlation between the two inflation rates? Why do the two inflation rates in this example differ, if they do? What are the sources of differences in the two inflation rates in reality
Year Quantity Goods Quantity Services Price Goods Price Services 2010 2000 6200 2 1.5 2011 2200...
Assume that an economy produces only three goods; Computers, cars, and pizza. Table 1 gives the price and quantity for each good and the number of employed and unemployed individuals for the years 2010-2013. Table 2 gives the fixed basket used for calculating the CPI. Assume that the base year is 2011 and show your work! Table 1 - Price and Quantity of Goods Sold in 2010-2013 2010 2011 2012 2013 P Q P O P Q 25 Computers Cars...
2. Download the annual real GDP and GDP data of the United States 1950-2018 from FRED. For the real GDP, the data online is chain-weighted and uses 2012 as the base year. In the lecture hursday, I showed you the detailed method and calculated the new chain-weighted real GDP when 1990 is the base year. You are required to calculate a new sequence of chain- weighted real GDP given a new base-year. The base year you should use in your...