Question

help me 11,18,20, 25

18. Tables Frohlandian Prices in 1998 and 1999 1 Banana 1 Box of Cereal 1 1 Can of Orange Juice Prices in 1998 $1.00 55.00 $3.00 Prices in 1999 $1.50 $6.00 $3,40 The table above gives the prices of goods in Frolandia during 1998 and 1999. The typical basket of goods in Frohlandia consists of 10 bananas, Frolandian CPI in 1999 if the base year is 1998? ($50/540)*100 - 125.0. 100.0 0. (540/550)x100 = 80.0. boxes of cereal, 19. Which equation is correct? • GOP =C+I+G+X - IM. GDP =C+I+G+IM-X GDP =C+I+G+X+ IM. O GOP -C+1+G-Taxes Transfers Table The Consumer Price lodex (CPI February 2009 22 Ten 2010 216 February 2011 Perry, 2013 Consider the table above. The Consumer Price Index (CPI). The CPI in February 2009 was 212 2. In February 2010, it was 216.7. What was the annual rate

Answer 1

(18) - Number of Orange juice is not seen in question.

(19) (A)

GDP (Y) = Consumption + Investment + Government spending + Exports - Imports

(20) (A)

Inflation rate between Feb 2009 and Feb 2010 = % Change in CPI = (216.7/212.2) - 1 = 1.0212 - 1 = 0.0212 = 2.12%

(11) (B)

Inflation rate between years 3 and 4 = % Change in CPI = (125/105) - 1 = 1.1905 - 1 = 0.1905 = 19.05%

(25) (D)

Real GDP = $\dpi{50} \sum$(Base year (2014) price x Current year (2013) quantity) = 1 x 200 + 2.25 x 100 = 200 + 225 = 425