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a.Core cpi doesn’t include the price of food and energy whereas headline CPI does9.
How long would it take for the entire economy to double if it grew by the 1995 rate?a.70/1.1 = 25 years **double means percent chnge in real GDP 10. Convert nominal price of milk to what it would be in CPI’s base yeara.(100/230)*2.90 = $1.2611. How long would it take for the prices in the economy to double if it grew by the 1995
rate?12. What is the average annual economic growth rate from 1995 to 2005?a.70/ 2.8 = 25 yearsa.200/180 ^ 1/10 - 1 b.Real GDP to measure economic growth ratec.GDP deflator to measure CPI changes13. What happened to your real wage?
1.Workers get left behind (unexpected inflation is harmful to real wages and real rates)14. If economic growth around the world was zero sum, what would we expect to see as
some economies grow?a.COUNTRIES ARE GROWING AT THE EXPENSE OF OTHER COUNTRIES - ECONOMIC GROWTH IS NOT ZERO SUM 15. How long would it take for prices for consumers to double if it grew by the 1995?
a.In this equation you would use the CPI rate because it refers to consumers so 70/2.5 =