Problem+Set+1+2009 (1)

Problem+Set+1+2009 (1) - Problem Set #1 Macroeconomics 1B,...

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Macroeconomics 1B, Professor Sheffrin, Fall 2009 1. Below are consumption data for 2006 and 2007. Assuming that 2006 is the base year (equal to 100), what is the value of the CPI for 2007? What is the inflation rate (as measured by the CPI) between 2006 and 2007? Goods Amount Price 2006 Price 2007 Pizza 12 $10 $12 Economics Book 1 $65 $66 Gas 10 $2 $2.50 Diet Coke 24 $1.50 $1.70 2. Fill in the blank entries in the following table: Note: GDP deflator = [(nominal GDP)/(real GDP)] x 100 NA means not applicable. Do not fill in Year 2003 2004 2005 Real GDP 2000 NA NA Nominal GDP 3500 NA 4000 NA 5000 GDP deflator NA NA 200 Inflation rate NA NA 10% NA Real GDP growth NA NA NA 3. Fill in for the question marks, assuming that National Income = 3500 a. Wages 1000 Interest 300 Rents ? Profits+ Prop Income 1000 Fill in for the question marks, assuming that GDP = 3500 b. Consumption 1700 Gross Investment 600 Net Investment 400 Depreciation ? Government purchases
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This note was uploaded on 09/25/2011 for the course ECN 001B taught by Professor Staff during the Fall '09 term at UC Davis.

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Problem+Set+1+2009 (1) - Problem Set #1 Macroeconomics 1B,...

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