Given that the CPI for 2016 is 100, (a)Compute the CPI inflation rates for the years 2017 and 2018. (b)(i) Determine the percentage change in GDP deflator for 2016-2017 and 2017-2018. (ii) Compare your results in (i) above with your answers in (a) and justify. [ (c)Explain three problems associated with using CPI to measure cost of living.
Given that the
(a)Compute the CPI inflation rates for the years 2017 and 2018.
(b)(i) Determine the percentage change in
(ii) Compare your results in (i) above with your answers in (a) and justify. [
(c)Explain three problems associated with using CPI to measure cost of living.
(d)State any two logical information you can infer about the hypothetical economy described above.
(e)The government in 2018 announced and implemented a 10 percent increase in the nominal salary of an average public servant from Gh¢500 in 2017. Does the salary of an average public servant have more
(f)Briefly describe the concept of ‘rebasing’. Explain how rebasing affects the income and cost of living estimates of a country.
Step by step
Solved in 4 steps
