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# Inflation

### Real Change in Net Worth

In 1970, Bill Gates' net worth was \$1, 692. At that time, the CPI was 51.3. In 1999, Bill Gates' net worth is \$51,344,629,323. The 1999 CPI is 232.6. Rounded to the nearest dollar, what has been the real change in Bill's net worth?

### Average Annual Inflation Rate with Actual Prices Adjusted

Thirty years ago, the price of a new Volkswagen was \$5,000. (Actual price adjusted to simplify the calculation). The price of a new Volkswagen is \$20,000 today. Basing your answer solely on the aforementioned prices, by what percent have prices increased over the past thirty years? What average annual inflation rate would have

### Replacement cost decisions

Cotner Clothes Inc. is considering the replacement of it old, fully depreciated knitting machine. Two new models are available: Machine 190-3 which has a cost of \$190,000, a 3 year expected life, and after tax cash flows (labor savings and depreciation) of \$87,000; and Machine 360-6 which has a cost of \$360,000, a 6 year life, a

### Measures and Indicators: GDP, national income, unemployment, inflation

My reference organization is Walmart Referring to indicators of performance, particularly indicators of improving or decreasing levels of performance used by Walmart. Please address the following questions: 1. What are the three best macro-economic indicators that you could use to assess conditions that apply to Wa

### Inflation and Interest rates

Explain as carefully as you can why borrowers would be willing to pay a higher interest rate if they expected the inflation rate to increase in the future.

### Government Budget, Labor demand, Equilibirum

What are government's fiscal policy options for ending severe demand-pull inflation? Use the aggregate demand-aggregate supply model to show the impact of these policies on the price level. Which of these fiscal policy options do you think might be favored by a person who wants to preserve the size of government? A person who

### CPI + S/D diagram

A) Suppose that several months of data showed the CPI increasing at a 1% annualized rate down from previous 4% rate and this caused expectations of annual inflation to also decrease from 4% to 1%. Assume, at the same time that fears of recession and default on corporate and asset backed bonds reduced the expected real rate of r

### Using the Fisher Effect

Examine the exchange rate of the U.S. dollar to the Japanese yen in January 2005 versus January 2006. 2. Compute the appreciation or depreciation of the U.S. dollar relative to the Japanese yen. 3. Check the U.S. inflation rate for 2005 and apply the Fisher effect formula. (Please explain the formula and how you got

### Calculating inflation rates using Fisher Effect

1. Examine the exchange rate of the U.S. dollar to the Japanese yen in January 2005 versus January 2006. 2. Compute the appreciation or depreciation of the U.S. dollar relative to the Japanese yen. 3. Check the U.S. inflation rate for 2005 and apply the Fisher effect formula. (Please explain the formula and how you got t

### Macroeconomics

Suppose worker productivity increased at the rate of 1.9% per year. If the labor force grew by 1.5% per year, what rate of increase in RGDP would be sustainable without increasing inflation pressures?

### Inflation

Suppose that initially actual and natural real GDP both equal 11,000 and that the rate of inflation is 3.5 percent. Natural real GDP grows by 3 percent per year over the next five years. Actual real GDP decreases by 2 percent in the first year, but then grows by 4 percent in the second year, 5.5 percent in the third year, 4.2 pe

### current real stock of money in the US

I need help in Managerial Economics I am using Economics for managers BOOK: ECO 550 STRAYER UNIVERSITY 2008 CUSTOM EDITION; ECONOMICS for MANAGERS: ISBN- 13: 978-0-558-03749-9. Please should step by step detaileds in solving the problem. Real Interest Rate Given 2005 data where nominal money supply (M1) \$1,374.5 Billion,

### 3 to 4 page paper on the Analysis of a business cycle

Assessment 4: Analysis of the Business Cycle. Go to the web site of the Bureau of Labor Statistics at http://www.bls.gov/ and the Bureau of Economic Analysis (National Economic Accounts) at http://www.bea.gov/national/ or any other data source and collect the most recent 6 months of data on real GDP growth, inflation, and unempl

### Economics

Help in answering these questions. Answers should be 250-300 words each. 1 Inflation is the general increase in prices with some prices rising faster than average and even some prices falling. Inflation attracts a great deal of attention among policy makers and some of the remedies for it can have serious consequences in pr

### Federal Reserve, Banking, and Inflation

Read the articles "Fed Official Expects Growth" at http://pittsburghlive.com/x/tribunereview/ business/s_385893.html and "Are Inflation Expectations Rising from the Ashes?" at http://research.stlouisfed.org/publications/mt/20051101/cover.pdf Â· Create a MicrosoftÂ© PowerPointÂ® presentation with 10-12 slides addressing the fo

### Calculation of the Consumer Price Index (CPI)

- What are the characteristics of the items listed as strengths? - What are the characteristics of the items listed as weaknesses? - If the CPI is imperfect, why do we use it?

### Calculating the Inflation Rate

Question: If the CPI was 110 last year and is 121 this year what is this year's rate of inflation? What is the "rule of 70"? How long would it take for the price level to double if inflation persisted at: (a) 2 percent per year? (b) 5 percent per year? (c) 10 percent per year?

### Real GDP

A. Gross Domestic Product (GDP) b. Real GDP c. Unemployment rate d. Inflation rate e. Interest rate explain how the circular flow diagram illustrates the interaction of households, government, and business. Also, describe how current economic conditions are effecting organization which you are familiar. Id

### Analyzing CPI data

Compute the inflation rate for each year 1989-2006 and determine which were years of inflation. In which years did deflation occur? In which years did disinflation occur? Was there hyperinflation in any year? Year CPI 1988 118.3 1989 124 1990 130.7 1991 136.2 1992 140.3 1993 1

### Philips curve

Due to historical differences, countries often differ in how quickly a change in actual inflation is incorporated into a change in expected inflation. In a country such as Japan that has had very little inflation in recent memory, it will take longer for a change in the actual inflation rate to be reflected in a corresponding ch

### Inflation, deflation, and unemployment; market vs. command economies

1. What is the formal definition of economics? Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. One of the key words in the definition of the term "economics" is coordination. 2. What is a consideration

Draw an AS/AD diagram illustrating your answer to the statement below. That is, draw an AS/AD diagram which shows what happens if strong growth in AD has pushed actual RGDP to a level above potential (full employment) RGDP. Be sure to label all lines and axes in your diagram clearly. If the Inflation rate were to accelerate

### Current Status of Real GDP, Unemployment Rate, & Inflation Rate

1. Define & describe the current status of Real GDP, unemployment rate, inflation rate as measured by CPI,Â auto sales, Producer Price IndexÂ (PPI), and Oil & Fuel Prices. Make a graph for eachÂ illustrating the historic trend. ( I would say go back 5 or 10 years..whateverÂ you think).Â For instance, Real GDP means blah, blah, b

### Macroeconomics: GDP, Unemployment, Inflation, and Circular Flow

Prepare a 700 word paper in which you define the following terms: a. Gross Domestic Product (GDP) b. Real GDP c. Unemployment rate d. Inflation rate e. Interest rate In your paper, explain how the circular flow diagram illustrates the interaction of households, government, and business. Also,

### Consumer Price Index calculation

Make a chart that lists three strengths and three weaknesses of the Consumer Price Index calculation. Post a response that answers the following questions once your chart is complete: o What are the characteristics of the items listed as strengths? o What are the characteristics of the items listed as weaknesses? o If t

I need help with a 1500 word paper on the following, using information from previous assignments which are provided below, however the information needs to be elaborated on further, this is my portion of the assignment. (I am willing to pay up 20 credits if this can be completed in 1 day) with no plagiarism and references. WK 1

### International Finance Problems - inflation, put option, weak dollar, payable, hedge

1) Relatively high Japanese inflation may result in an increase in the supply of yen for sale and a reduction in the demand for yen. A)true. B)false. 2) If an actual put option premium is less than what is suggested by the put-call parity relationship, arbitrage can be conducted. A)true. B)false. 3) A weak dollar is no

### Productivity, Inflation

I need help understanding the concepts of full employment, inflationary gaps, and recessionary gaps and current level of unemployment in terms of current and potential GDP. If a change in productivity occurs, what are the changes to equilibrium output, prices, and the unemployment level. Assume that right now, the conse