Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%. Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses.

Question

1. Suppose you have $200,000 in a bank term account. You earn 5% interest per
annum from this account.
You anticipate that the inflation rate will be 4% during the year. However, the
actual inflation rate for the year is 6%.
Calculate the impact of inflation on the bank term deposit you have and
examine the effects of inflation in your city of residence with attention to food
and accommodation expenses.
2. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian
population in Australia over 15 years of age was 20.8 million.
Of this population of 20.8 million Australians, 13.5 million were employed and
0.7 million were unemployed.
Calculate Australia’s labor force and the number of people in the civilian
population who were not in the labor force? Also, with examples examine the
causes of structural unemployment in Australia

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