YearPrice of T-ShirtQuantity of T-ShirtPrice of PajamasQuantity of Pajamas201510120122002016123001520020171427518180Calculate the inflation rate for 2015, 2016 and 2017. Given the following on a closed economy.C = 40 + 0.8Yd C= consumptionI = 55 – 200r I= InvestmentG = 20 G = government spendingT = 20 T = TaxesYe = 400 Ye = National Incomer = rate of interest3. Determine the following: The equilibrium level of consumptionThe level of investmentThe level of interest rateThe level of Private savingsThe level of Public savingsThe level of national savings

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Year Price of T-Shirt Quantity of T-Shirt Price of Pajamas Quantity of Pajamas 2015 10 120 12 200 2016 12 300 15 200 2017 14 275 18 180 Calculate the inflation rate for 2015, 2016 and 2017.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 12SQ

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Question

Year	Price of T-Shirt	Quantity of T-Shirt	Price of Pajamas	Quantity of Pajamas
2015	10	120	12	200
2016	12	300	15	200
2017	14	275	18	180

Calculate the inflation rate for 2015, 2016 and 2017.
Given the following on a closed economy.
C = 40 + 0.8Yd C= consumption
I = 55 – 200r I= Investment
G = 20 G = government spending
T = 20 T = Taxes
Ye = 400 Ye = National Income
r = rate of interest

3. Determine the following:
The equilibrium level of consumption
The level of investment
The level of interest rate
The level of Private savings
The level of Public savings
The level of national savings

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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