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Douglas A. Ruby

Inflation

National Income Accounting

Macroeconomics

Tutorial -- Macroeconomic Data

Given the following data:
 Base Year 1998 1999 2000 Good P Q P Q P Q P Q Apples 1.50 100 1.60 120 1.60 150 1.75 150 Bread 1.00 200 1.25 225 1.25 230 1.30 230 Milk 1.25 150 1.40 140 1.40 180 1.50 180
A. Calculate the values of Nominal GDP NGDP and Real GDP RGDP for the years: 1998, 1999, 2000. In what way do these values differ for each year?

B. Calculate the rates of Economic Growth between the years 1998 & 1999 and between 1999 & 2000. Explain the results.

 IPD = SPi,tQi,t / S Pi,oQi,t Use the mouse to click on any price / quantity cell to change the numeric values. The GDP (Implicit Price) Deflator

 Base Year 1998 1999 2000 Good P Q P Q P Q P Q Apples 1.50 100 1.60 120 1.60 150 1.75 150 Bread 1.00 200 1.25 225 1.25 230 1.30 230 Milk 1.25 150 1.40 140 1.40 180 1.50 180
C. Calculate the value of the GDP Deflator and CPI for the year 2000. Why do these values differ?

D. Calculate the rate of Inflation between the years 1998 & 1999 and 1999 & 2000.

 The Consumer Price Index CPI = SPi,tQi,o / S Pi,oQi,o Use the mouse to click on any price / quantity cell to change the numeric values.