Assignment#3 .docx

# Assignment#3 .docx - Assignment#3 Omar El-Arab 100889575...

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Assignment #3 11/03/2014 Omar El-Arab 100889575 Q-1 A) 100 0+300+1500 = 2800 B) Flour Mill = 1,000 – 400 = 600 Water Supplier = 300 – 200 =100 Bakery = 1,500 – 200 = 1,300 C) 300 + 100 + 1,500 = 1,900 Q-2 A) (275 – 25)= 250 B) 135 C) (150-15)=135 D) 250 Q-3 A) 2009: CPI = 100 * (285000/296800) = 96.02 2010: CPI = 100 * (331475/296800) = 111.68 B) 2009: GDP deflator = 100 * (285000/270720) = 105.27 2010: GDP deflator = 100 * (331475/312840) = 105.95 C) CPI Inflation rate: (111.68-96.02/96.02) * 100% = 16.31% GDP Inflation rate: (105.95-105.27/105.27) * 100% = 0.65%

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D) The GDP deflator reflects the prices of all goods and
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