In each of the following cases, does the increase in prices affect CPI, GDP deflator, or both in Pakistan? Analyze and justify your answer.                                            The price of imported capital goods used in the production of sugar has increased. The price of Tapal tea has increased.   Analyze and explain the effect of the minimum wage law on the unemployment rate. Explain your answer by using graph.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
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In each of the following cases, does the increase in prices affect CPI, GDP deflator, or both in Pakistan? Analyze and justify your answer.                                           

  1. The price of imported capital goods used in the production of sugar has increased.
  2. The price of Tapal tea has increased.

 

Analyze and explain the effect of the minimum wage law on the unemployment rate. Explain your answer by using graph.  

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