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unemployed persons falls? Explain.
Total dollar expenditure market basket
Total dollar expenditure on market basket in current year = (e)
(e) Doing the Math Total dollar expenditure market basket base
Total dollar expenditure on market basket in base year = (f )
(f Do the calculations necessary to solve
the following problems.
1. Using the following data, compute the GDP:
consumption $3. 2 trillion; government purchases $1.2 trillion; export spending $1.9
trillion; import spending $1.8 trillion; and
investment $1.5 trillion.
2. A tiny economy produces 10 units of good X
and 15 units of good Y. Base-year prices for
these goods are $1 and $2, respectively. Currentyear prices for these goods are $2 and $3. What
is the CPI?
3. Using the data in question 2, what does real
4. In Exhibit 11-8, change the prices in column 2
to $14 for CDs and $6 for T-shirts. Change the
prices in column 4 to $17 for CDs and $8 for
T-shirts. Now calculate the CPI.
5. The CPI is 143 in ye...
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- Winter '14