- Suppose you have the following Price and Quantity data for 2013, 2014 and 2015.
| 2013 | Quantity | Price ($) | Expenditure | ||||
| Cars | 15 | 28000 | |||||
| Pizza Ovens | 20 | 400 | |||||
| Tanks | 5 | 300000 | |||||
| Nominal GDP | |||||||
| 2014 | Quantity | Price | Expenditure | ||||
| Cars | 12 | 25000 | |||||
| Pizza Ovens | 30 | 500 | |||||
| Tanks | 8 | 350000 | |||||
| Nominal GDP | |||||||
| 2015 | Quantity | Price | Expenditure | ||||
| Cars | 10 | 25000 | |||||
| Pizza Ovens | 18 | 500 | |||||
| Tanks | 3 | 320000 | |||||
| Nominal GDP | |||||||
| Quantity(2014) | Price (2013) | Expenditure | |||||
| Cars | 12 | 28000 | |||||
| Pizza Ovens | 30 | 400 | |||||
| Tanks | 8 | 300000 | |||||
| Real GDP 2014 | |||||||
| Quantity(2015) | Price(2013) | Expenditure | |||||
| Cars | 10 | 28000 | |||||
| Pizza Ovens | 18 | 400 | |||||
| Tanks | 3 | 300000 | |||||
| Real GDP 2015 |
Compute Nominal (Money) GDP and Real GDP (using 2013 Prices) for each year. Compute the GDP growth rate for 2014 and 2015 Would the GDP Growth Rate for 2014 be different if 2014 prices were used as base year prices?
- The following data was recorded following a survey of the labor force at the end of 2015:
Employed: 13,500; Unemployed: 1,500; Not in the labor force: 7500.
The following changes in the labor market was observed for 2016: Job Losers: 750; Job Leavers 300; Hires and Recalls: 1000; New Entrants: 150; Reentrants: 450; Withdrawals: 500. All job losers, entrants and reentrants became unemployed. The working age population increased by 100 in 2016.
For 2016: Calculate the labor force participation rate and the unemployment rate
- Suppose a typical household bought the following in years 2017 and 2018:
Q Quantity Purchased; P Price of Good. Suppose a typical family buys a market basket of 10 units of X, 14 units of Y, 25 units of Z
| Good | Q 2017 (units) | P 2017 ($) | Q 2018 (units) | P 2018 ($) |
| X | 10 | 15 | 10 | 14 |
| Y | 14 | 10 | 14 | 13 |
| Z | 25 | 11 | 25 | 13 |
- Compute CPI 2017 and 2018 using 2017 as base year. Compute the rate of inflation in 2018.
- If instead, you used 2018 as the base year, would the CPI number change? How about the rate of inflation for 2018?