ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 10, Problem 1.2P
To determine
Real wage rate and nominal wage rate.
Concept Introduction:
Real wage rate: Inflation is the rate at which the commonprice level for goods and services are increasing.
Nominal wage rate: Nominal wage is the money wage received by the labor. It is not adjusted to inflation.
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4. Calculate the growth rate of real GDP in 1998.
5. Calculate the growth rate of nominal GDP in 1998.
6. Calculate the CPI for 1997.
7. Calculate the inflation rate for both 1997 and 1998.
13. Refer to Table 24-3. Calculate the inflation rate for March.
14. Explain how the prices of goods and services used in the CPI differ from the prices reflected by GDP deflator.
Further background:
• China primarily exports electrical equipment. This would include computers and optical and medical equipment. It's also a big exporter of low-cost apparel, fabric, and textiles. A lot of China's exports are manufactured products made for U.S. companies. These companies pay to ship raw materials to China. There the low-cost factory workers process the materials into the final product. The top import categories in 2017 were: electrical machinery ($147 billion), machinery ($110 billion), furniture and bedding ($32 billion), toys and sports equipment ($26 billion), and plastics ($16 billion).
• Almost 75 percent of Canada's exports go to the United States. Canada has abundant supplies of oil, gas, and uranium. Its main exports include oil, vehicles and wood. The top import categories in 2017 were: mineral fuels ($73 billion), vehicles ($56 billion), machinery ($21 billion), special other (returns) ($14 billion), and plastics ($11 billion).
• Mexico sends…
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ECON MACRO
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