{"id":182833,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/inflation-aggregate-demand-supply"},"modified":"2018-10-24T09:16:40","modified_gmt":"2018-10-24T09:16:40","slug":"inflation-aggregate-demand-supply","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/inflation-aggregate-demand-supply\/","title":{"rendered":"Inflation, aggregate demand & supply"},"content":{"rendered":"
    \n
  1. Suppose an economy has only three goods, and the typical family purchases the amounts<\/strong><\/li>\n<\/ol>\n

    given in the following table. If 2005 is the base year, then, what is the CPI for 2012? Show<\/strong><\/p>\n

    all working out. <\/strong><\/p>\n

    Product<\/em><\/strong><\/p>\n

    Quantity <\/em><\/strong><\/p>\n

    (2005)<\/em><\/strong><\/p>\n

    Price<\/em><\/strong><\/p>\n

    (2005) <\/em><\/strong><\/p>\n

    Expenditures<\/em><\/strong><\/p>\n

    (2005) <\/em><\/strong><\/p>\n

    Price (2012)<\/em><\/strong><\/p>\n

    Expenditures (on base <\/em><\/strong><\/p>\n

    year quantities) (2012)<\/em><\/strong><\/p>\n

    Computers 1 $1700 $1700 $1200 $1200<\/p>\n

    Books 10 $25 $250 $30 $300<\/p>\n

    Burgers 50 $1.00 $50 $2.00 $100<\/p>\n

    Total   $2000  $1600<\/strong><\/p>\n

     <\/p>\n

      \n
    1. Explain how the CPI is constructed, and discuss any weaknesses with this measurement<\/strong><\/li>\n<\/ol>\n

      technique. <\/strong><\/p>\n

       <\/p>\n

        \n
      1. What type of consumer good is most affected by the business cycle\u2014durable goods or <\/strong><\/li>\n<\/ol>\n

        non-durable goods? Why? <\/strong><\/p>\n

         <\/p>\n

          \n
        1. Explain what happens to inflation and unemployment during the business cycle. <\/strong><\/li>\n<\/ol>\n

           <\/p>\n

            \n
          1. Explain the three reasons the aggregate demand curve slopes downward. <\/strong><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

            Suppose an economy has only three goods, and the typical family purchases the amounts given in the following table. If 2005 is the base year, then, what is the CPI for 2012? Show all working out. Product Quantity (2005) Price Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-182833","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/182833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=182833"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/182833\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=182833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=182833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=182833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}