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Q. Explain Consumer Price Index?
CPI is a price index of a particular basket known as the CPI-basket. CPI-basket comprise essentially all the servicesand goods consumed in a country -gas,food, medicine, haircuts, house rent, transportation and so on. Composition of the CPI basket is determined by value of what is consumed in the country - the larger the value of entire consumption of a good or service, the larger the weight in basket. For illustration, if we spend twice as much on apples as on pears, apples would have twice the weight in the basket. The particular details of the composition of basket and how the CPI is calculated are complex and vary somewhat between nations. Figure below demonstrates CPI for Germany after the reunification starting at January 1991. This data has 2005 as the reference year. This means that CPI is constructed in such a way that CPI is exactly equal to 100 on average during 2005.
Figure
Consumer price index (CPI) for Germany 1991 - 2010. Source: OECD.
A government can finance its budget deficit by doing all of the following except: A. borrowing from its central bank. B. printing money. C. selling bonds. D. buying bonds.
What are the key components in the costs of health care services?
the circular flow of income in an governed economy
money demand = 3500 - 250i what is the interest rate present if the money market is in equilibrium
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A seafood restaurant in a beach resort town has a fixed (unavoidable) cost of $1,000 per month and variable (avoidable) costs of another $1,000 per month. Its total revenues over t
economic indicators graph
Factors Responsible for changes in Aggregate Supply We know that changes in input costs such as wages, oil and other input prices will cause changes in aggregate supply. Most
Q. Define the Real wage? Consider the following scenario. You work full time and during January 2008 you make 2000 euro after tax. A certain basket of goods and services costs
All of the following fiscal policies will contribute to increasing budget deficits except: A. cuts in aid to farmers. B. tax cuts. C. increases in defense expenditures. D. increase
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