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A: Inflation rate is the percentage change in average price level of goods and services.
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A: Given inflation rate in Country A = 5 % Rule of 70 = 70 / inflation rate
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Q: Which formula is part of the Rule of 72?
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Q: Define the term Equivalence Calculations under inflation?
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Q: Describe the method of Actual-Dollar Analysis?
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Q: Describe the process of Equivalence Calculations under Inflation?
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A: Introduction Inflation means that rise in price level of goods and services in an economy over a…
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Q: The "Rule of 72" is a reliable guide to the impact of inflation. It is based on dividing 72 by the…
A: The rule of 72 basically estimates the number of years in which any investment/GDP/etc. doubles with…
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A: Inflation refers to an increase in the prices of goods and services.
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A: Given that: Rate of Inflation = 5% or 0.05 Base value = 100 at time t = 0
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Q: Which of the following correctly shows the steps needed to calculate the inflation rate?
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A: Inflation is the general rise in the price level in an economy over a period of time. It reduces the…
Q: Both inflation and deflation can be dangerous. Based on your readings, provide historical examples,…
A: Inflation measures the rate at which prices in an economy rise during a given period. Deflation…
Q: Inflation is best described as: A sustained increase in the demand for goods and services. A…
A: Inflation is a proportion of the pace of rising costs of goods and services in an economy.
Q: Core inflation figures omit health care prices, but not energy prices. True or False True False
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Q: Do you think perfect indexing is possible? Why or why not?
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A: In 2014, the U.S. inflation rate was 1.6%.
Q: Zoro agreed to make a loan to Kenneth based on an interest rate charge of 8% per annum. Which of the…
A: INTRODUCTION: INFLATION RATE: In economics, inflation is a general growth in the costs of products…
Q: Characteristics of inflation
A: Inflation refers to the rise in the prices of goods and services in an economy. In other words, a…
Q: Why there is an occurrence of Lewis Turning Point?
A: The Lewis model was developed by Arthur Lewis, who modelled the migration of labour from rural…
Q: The RPI indicator in country A is 118 in 2019 and 135 in 2020. Between 2019 and 2020 by using the…
A: The RPI indicator would be used to measure the inflation which would be used to capture the…
Q: Indexation the automatic correction by law or contract of a dollar amount for the effects of…
A: Organizations and governments use indexation as a mechanism or strategy to link pricing and asset…
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A: Given: Year Price 1998 125 1999 150 2000 140 2001 160 2002 175
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- According to the rule of 70 and 72, a 10% annual increase in real gdp would lead to a doubling of real gdp in how many years?In the 1990s, developed countries agreed to double their aid to Africa by 2015. A report by the United Nations conference on Trade and Development noted that sceptics had raised concerns about how much effect the doubling of aid would have on output and incomes in Africa, if the quantity of other inputs such as human capacity and institutions were to remain fixed. It also pointed to the divisions between the sceptics with some suggesting the return would diminish when aid reached only 4% of GDP, while others thought they would diminish only when it had reached 50%. It should be added that even if the returns do begin to diminish, they could still be very important.In 1887, Cecil Rhodes created the De Beers Consolidated mines Company, which controlled about 90% of the total world supply of rough uncut diamonds with its South African mines. Until 2001, De Beers produced about half of the world’s diamonds in its mines and marketed about 80% of the world’s diamonds. Diamond producing…To improve problems with the economy, the government must reduce regulations and legal requirements for businesses to thrive. Environment and worker rights are secondary to economic growth. Is this a liberal or a conservative opinion?
- If there is a sharp increase in the number of workers, holding all other things constant, which of the following is likely in the short term? a) increase real GDP per person but decrease real GDPb) raise real GDP but decrease real GDP per personc) raise both real GDP and real GDP per persond) decrease both real GDP and real GDP per personmatch the economic goal to the problem and indicator Problem: unemployment indicator unemployment rate Problem: inflation indicator: consumer price index Problem: recession indicator: real GDP A. EConoMic growth b. full employment l C. Price stabilityAssume there is a second economy ( country B ) with everything identical to country A except for the rate of population growth , which is 2 percent . Answer the following questions for country B. Assume both countries start a k = 0 , which country grows more in the short run ( before steady state is reached ) , as given by the rate of growth of output per worker ? ( hint : the further away from steady state , the faster the growth towards it ). O. Country A O. Same for both O. Country B
- Suppose the unemployment rate was 7.4 percent, far above the full-employment threshold (= 5 percent). Instructions: In part a, round your response to two decimal places. In parts b–c, enter your responses as a whole number. a. How many jobs were lost, as a result, in a labor force of 150 million? b. If the average worker produces $100,000 of output, how much output will be lost? c. By how much did GDP per capita decline as a result (310 million people)?How is economic growth measured? Question 1Answer a. The percentage change in the employment rate b. The percentage change in income taxes collected by the government c. The percentage change in real GDP d. The percentage change in the unemployment rateSuppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in reponse to each of the following changes? Production function is Y=AK^1/3L^2/3 d. Earthquake destrys 75% of the capital stock e. Generous immigration policy lead the population to double Fast answer
- People like to complain about inflation and not being able to afford things, but we also have more than any generation before us. The person buying a chicken in 1919 was not also factoring in Netflix and going to a concert in their budget - they spent more time working (vocation and around the home) and they had much less than we do.What do you believe is more of a problem towards long-term economic growth: persistent inflation or unemployment? justify your answer.Accordin to the pictures What will be the stage of business/economic cycle of each country in the next three years?