Calculate the rate of inflation when the Consumer Price Index went from 200 to 208.  Of the 200 million people who want to work, 180 million have jobs. Calculate the unemployment rate.  Calculate the expenditure multiplier when the marginal propensity to consume (MPC) is 0.7, with all other variables held constant.

Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:William J. Baumol, Alan S. Blinder
Chapter6: How Statisticians Measure Inflation
Section6.A: How Statisticians Measure Inflation
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 Calculate the rate of inflation when the Consumer Price Index went from 200 to 208.  Of the 200 million people who want to work, 180 million have jobs. Calculate the unemployment rate.  Calculate the expenditure multiplier when the marginal propensity to consume (MPC) is 0.7, with all other variables held constant.  Calculate the Real GDP to the nearest whole number when Nominal GDP is 1224 and the price deflator is 1.04.  When income increased from $14,000 to $15,000, consumption increased from $13,000 to $13,700. Calculate the MPC.

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