The three-year period of inflation annually, Macroeconomics

The GDP deflator in Economy land is 200 on January 1, 2010. The deflator rises to
242 by January 1, 2012, and to 266.2 by January 1, 2013.

a. What is the annual rate of inflation over the two-year period between Januarys? 1, 2010, and January 1, 2012? In other words, what constant yearly rate of
Inflation would lead to the price rise observed over those two years?

b. What is the annual rate of inflation over the three-year period from January 1, 2010, to January 1, 2013?

c. In general, if P0 is the price level at the beginning of an n-year period, and Pn is the price level at the end of that period, show that the annual rate of inflation? Over that period satisfies the equation (1 + ? )^n = (Pn / P0)

Posted Date: 2/4/2014 2:14:07 AM | Location : United States







Related Discussions:- The three-year period of inflation annually, Assignment Help, Ask Question on The three-year period of inflation annually, Get Answer, Expert's Help, The three-year period of inflation annually Discussions

Write discussion on The three-year period of inflation annually
Your posts are moderated
Related Questions
OPEC oil cartel becomes subject to this tension or conflict such that the cartel gives way to a more competitive oil market resulting in a dramatic decrease in the world oil price.

Because the structure of the personal income tax is progressive, a larger share of income is taxed at higher rates as real income increases. Therefore, economic growth automaticall

Q. Explain money market with inflation? The money market with inflation  Let's begin with the money market diagram and introduce inflation. As M D relies positively on P

When a hurricane or flood or a pandemic strikes a country, who is most likely to respond first?


In the long run, imports will most likely be paid for with: a. Aexports. b. The sale of real and financial assets. c. the extension of credit. d. higher domestic unempl

The market demand for a factor   The market demand curve for any input is not simply the horizontal summation of the individual demand curves of all the firms. This is due to th

1 .Use the concepts of sampling error and z- scores to explain the concept of distribution of sample  means. (this is a paragraph answer needed) 2. Describe the distribution

Define the monopoly of Central banks The central bank has a monopoly on issuing currency, it is in complete control of the monetary base. In section 7.4.2 we will describe exac

Suppose arm's demand curve is given by P = 120? Find the (value of) price elasticity of demand (point elasticity) for the demand curve when the price is $100. Is demand elastic or