Instructions: Round your response to two decimal places. c. By how much has the average price level risen between 2012: 9680 and 2022: 14520? Hint: Compare the total basket cost in 2022 to the total basket cost in 2012. ______%?
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Instructions: Round your response to two decimal places.
c. By how much has the average
______%?
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- 14. What is an important reason for the rise in prices (inflation) in Canada since 1913?(A) The Government of Canada keeps increasing prices according to a pre-determinedformula.(B) The prices of raw materials have increased due to global warming and its associatedenvironmental effects.(C) Canada no longer backs its currency with gold.(D) None of the above.Inflation in the Philippines this year has surged to 4.9% in 2022, exceeding the inflationtarget band set by the Bangko Sentral ng Pilipinas. In response, the BSP might raise theirkey real interest rate soon, which will in turn affect loaning and lending rates in thecountry. In response to these conditions, firms and investors are growing anxious and assuch, are planning on pulling back on their investments. Given all the information above, illustrate and explain the effects of the decrease ininvestment on the economy. Make sure to cover the following: shifts (if any) in theaggregate expenditure curve, the change in equilibrium output (i.e. identify and comparethe old and new level of equilibrium output in the graph, and the multiplier effect.Please see below. These are true or false questions. Need help with all of these please and thank you. T/F Questions. 1. The price level is measured by using a basket of goods and services and calculating how the nominal cost of buying that basket of goods will change over time. 2. The base year values of all price indices is always equal to 1. 3. The rate of inflation is measured as the percentage change between price levels or the values of a price index over time.
- K2. Consider the case of the importing company IMP located in country I, which imports its raw materials form exporting company EXP located in country E. According to their contract this year company IMP has to pay E1Million to company EXP for its supplies. The current economic conditions are as follows: S(t=0,E/I)=0.5 Price Index(t=0,E)=1.2 Price Index (t=0,I)=1 The most likely macroeconomic scenario for next year predicts: inflation in country I from t=0 to t=1 at 4% inflation in country E from t=0 to t=1 at 1% A 10% nominal devaluation of currency I relative to currency E a) What is the nominal and real cost of the supplies for company IMP in terms of currency I for year t=0? b) What is the expected nominal and real cost of the supplies for company IMP in terms of currency I if the contract maintains the price of E1Million for year t=1? c) What will be the expected nominal and real cost for firm IMP if the two firms agree on a risk-sharing contract specifying an annual…Question 23 Not yet answered Marked bag question With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6 percent. But if the rate of inflation was anticipated to be 4 percent, the bank would most likely charge the firm an annual interest rate of Select one CA. 2 percent 08, 4 percent OC 6 percent. D. 10 percent5. Computer forecasting models have Group of answer choices -been able to forecast changes in the growth rate of real GDP with considerable accuracy. -had only limited success predicting turns in key economic variables such as real GDP. -been able to accurately forecast the future direction of inflation but not real GDP. -been able to accurately forecast the future direction of real GDP but not inflation. Which is correct?
- In early 2017, policymakers at the Federal Reserve forecast that real GDP during 2017 would increase faster than potential GDP and that the inflation rate for the year would be about 1.9 percent. Source: Federal Open Market Committee, "Advance Release of Table 1 of the Summary of Economic Projections to be Released with the FOMC Minutes," March15, 2017. Fill in the missing values in the table with estimates that are consistent with these forecasts. Assume that the growth rate for real GDP between 2016 and 2017 is 0.32 percentage points higher than the percentage change in potential output between those years (rounded to two decimal places). 2016 2017 Real GDP $16.7 trillion $nothing trillion Potential GDP $16.9 trillion $17.1 trillion GDP Deflator 111.5 nothing (Enter your responses rounded to one decimal place.)Assume that output began at its natural level. By drawing using AD-AS (Upward sloping) and Philips curves (graphs), analyze the short and long-run effects for these solutions. The evolution of technological advancement brings about a great impact on the economy (5 marks)Do you think it is rational for workers to prefer sticky wages to wage cuts, when the consequence of sticky wages is unemployment for some workers? Why or why not? How do the reasons for sticky wages explained in this section apply to your argument?
- Your company has been trying to grow since its creation in the year 2000, and the board of directors is dissatisfied that your department’s advertising budget has increased 40% since the year 2000 but that little growth has occurred as a result. What argument might you make in your defense? Select one: a. While the nominal value of the budget has grown 40%, the real value (adjusted for inflation) has dropped sharply, so we have been lucky to even stay in business over these years. b. While the real value of the budget has grown 40%, the output of the national economy (as indicated by the mild growth of the GDP deflator) has been stagnant, so our lack of company growth is no surprise. c. While the nominal value of the budget has increased 40%, the real value has increased even greater than that, so the lack of growth has to be attributable to another department of the company. d. While the nominal value of the budget has grown 40%, the real value (adjusted for…“It’s true that unexpected inflation redistributes wealth, from creditors to debtors, for example. But what one side of the bargain loses, the other side gains. So from the perspective of the society as a whole, there is no real cost.” Do you agree? Discuss.Suppose you have 6000 dollars in savings when the price index is at 100 (a) If inflation pushes the price level up by 10 percent, what will be the real value of your savings? (b) What is the real value of your savings if the price level declines by 5 percent?