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From the press release of the statistics of Retail Sales for January 2021, a government spokesman said that, “The figure for January was conceivably distorted by the difference in timing of the Lunar New Year, which fell in mid-February this year but late January last year.” Explain the rationale of this statement. Is the year-on-year percentage change of retail sales for January 2021 expected to be higher or lower than usual?
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- Assume that the average or mean monthly household consumption expenditure for Malaysia rose from RM3,578 in 2018 to RM4,033 in 2020, growing 6% per annum at nominal value, according to the statistics department. However, in terms of real value — which refers to the constant price using the Consumer Price Index with the base year 2014 as the deflator — annual growth rate is 3.9% for the same period, mentioned on its Household Expenditure Survey Report 2020. a) Suppose that consumer spending initially rises by RM5 billion for every 1 percent rise in household wealth and that investment spending initially rises by RM20 billion for every 1 percentage point fall in the real interest rate. Also, assume that the economy’s multiplier is 4. i. If household wealth falls by 5 percent because of declining house values, and the real interest rate falls by two percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level? ii. In what…Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of coffee, one donut, and one newspaper. In year one, the basket costs $6.00. In year two, the price of the same basket is $7.00. From year one to year two, there is at an annual rate of . In year one, $12.00 will buy baskets, and in year two, $12.00 will buy baskets. This example illustrates that, as the price level rises, the value of money .Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $7.00. In year two, the price of the same basket is $6.00. From year one to year two, there is at an annual rate of . In year one, $21.00 will buy baskets, and in year two, $21.00 will buy baskets. This example illustrates that, as the price level falls, the value of money .
- Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $9.00. In year one, $72.00 will buy(0.11, 0.13, 4.5, 8, 9) baskets, and in year two, $72.00 will buy (0.11, 0.13, 4.5, 8, 9) baskets. .If the price of your cell phone contract increases from R 700 to R 900 over a period of one year and your income rises from R15 000 to R15 500 during that same period, your nominal income has… a) Increased, and your real income has increased. b) Increased, but your real income has decreased. c) Decreased, and your real income has decreased. d) Increased, but your real income has remained the same.Year Units of Output Price Per Unit 1 8 $2 2 10 3 3 15 4 4 18 5 5 20 6 The accompanying table gives price and output data over a five-year period for an economy that produces only one good. If year 2 is the base year, then the percentage increase in real GDP from year 2 to year 4 is Group of answer choices 80 percent. 100 percent. 60 percent. 40 percent.
- If the real value of an item bought ten years ago is less than it’s nominal value at that time, what can one infer about the change in the overall price level during this ten year period?When calculating price indices like the GDP deflator and the CPI, we multiply the ratio by 100. Why? Neither statement is true. Statement a: We multiply by 100 to put things into percentage terms. Statement b: We multiply by 100 to normalize the base year to 100. Both statements are true.Given the data in the above table, what is the price index for 1991, using 1988 as the base year and using the 1988 consumption pattern (market basket)?
- Consider a macroeconomy where the current population is 800 thousand people. Gross domestic private investment is constant $2500 million while consumer expenditure is described by the equation: C = 580+ 0.8DI. The government is fairly active, with a total expenditure of $2000 million and net taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2500 million. Currently, the overall price level (GDP deflator) is 118 and the potential GDP level is $13.5 billion. What is the current equilibrium level of real GDP? (report your answer at 2 decimal places and in millions of dollars) 1. What is the current equilibrium level of real GDP 2. what is the current real GDP per capita? 3. what is the value gap?Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the value of all goods and services produced in the economy this year using_________ by the___________using___________and multiplying by 100. However, the CPI reflects only the prices of all goods and services____________.Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing thevalue of all goods and services produced in the economy this year using by the using and multiplying by 100. However, the CPI reflects only the prices of all goods and services . Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Scenario Shows up in the... GDP Deflator CPI A decrease in the price of a Chinese-made car that is popular among U.S. consumers An increase in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S.…
