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Q. Explain the problem involved in consumer price Index?
To explain the problems involved in calculating CPI we consider MP3 players. If you measure the average price of MP3 players at two points in time, let's say one year apart, you possibly will find that average price hasn't changed.
Though, this isn't the whole story because the products on the market would have changed. Characteristically, products at the later measurement are more advanced than products at the first measurement. If you were to compare prices of MP3 players with same performance, you would possible find that prices have fallen. Without adjusting for changes in quality andperformance, you will generally overestimate the rise in price index.
At first, it may seem obvious that consumption will rely on Y. If GDP is doubled in real terms over a number of years, government consumption, private consumption and investment wi
The Government, Rest of the World and the financial markets total expenditure of government can be divided into two parts: transfers to private sector and consumption.
In 2010, Forbes magazine listed Bill Gates, the founder of Microsoft, as the richest person in the United States. His personal wealth was estimated to be $53 billion. If there were
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The consumption function of an economy is given by c = 200+0.75(y-t) And the investment function by I = 200 = - 25r. Government purchases G and taxes Τ are both 100. T
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