time. These Indices can be 1. Wholesale Price Index (WPI) 2. Consumer Price Index (CPI) 3. GDP Deflator Today‚ most economists favor a low‚ steady rate of inflation. In this Report we try to find Inflation through all these three indices. All the data used here is sourced from RBI website. Q1. Calculate the inflation rate based on the wholesale price index‚ CPI (IW) and GDP deflator for the period of 1993- 1994 to 2009-2010. The inflation rate is calculated by Whole Sale Price
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example of each. 6. Why do economists use real GDP rather than nominal GDP to gauge economic well-being? Define the GDP deflator. 7. What is the CPI? Which do you think has a greater effect on the consumer price index: a 10 percent increase in the price of chicken‚ or a 10 percent increase in the price of caviar? Why? 8. Describe the three factors that make the consumer price index an imperfect measure of the cost of living. Then explain how the GDP deflator differs from the CPI. 9. List and describe
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Quantity Indexes. Question: Why are Fisher Indexes useful averages of Laspeyres and Paasche Indexes? Answer: The advantage of the geometric averages is revealed by considering the ratio of nominal values where $G is the rate of change of nominal GDP: Note that both prices and quantities are different‚ comparing the numerator and the denominator. If the ratio were 2‚ for example‚ value has doubled (). A
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HA NOI FOREIGN TRADE UNIVERSITY [pic] | | |Macroeconomics Essay | |Some people believe that Gross Domestic Product (GDP) is an inadequate measure of societal well-being and should be replaced by the Human | |Development Index (HDI). Do you agree with them? | |
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Chapter 7 Measuring a nation’s income The economy’s income and expenditure GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services. GDP can perform the trick of measuring both total expenditure because these two things are really nearly the same. For an economy as a whole‚ generally‚ income must equal expenditure This is true because: An economy’s income is the same as its expenditure because every
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GDP Macroeconomics is a branch of economics dealing with the performance‚ structure‚ behavior‚ and decision-making of an economy as a whole‚ rather than individual markets. Macroeconomists study aggregated indicators such as GDP‚ unemployment rates‚ and price indices to understand how the whole economy functions. More precisely‚ I want to talk about GDP which is Gross Domestic Product. GDP measures two things at once: 1. the total income of everyone in the economy. 2. The total expenditure on
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years 2010 and 2011. As seen in the graph‚ Japan’s economy made a plunge from year 2007 to year 2008‚ where GDP fell from ¥525‚469‚000 to ¥505‚794‚000 at a rate of 3.74%. This recession is the result of the world financial crisis that occurs from year 2007 to 2009. From the respective years of 2008 to 2009‚ Japan’s economy had made a further plummet by 2.02%. The sharp decline in real GDP of Japan results in an economic trough at ¥495‚570‚000 in the business cycle. Economists estimates that it was
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Gross Domestic Product (GDP) (Text p. 400 Q’s 1 & 2) 1. Define GDP and distinguish between a final good and an intermediate good. Provide examples. Gross Domestic product‚ is the market value of the final goods and services produced within a given time period. A final good is an item that is bought by its final user during a specified time period. It contrasts with an intermediate good‚ which is an item that is produced by one firm‚ bought by another firm and used as a component of a final
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a certain rate. But there can be a lower limit of rate of growth. If the growth rate of GDP is below this lower limit‚ then it will not be adequate for keeping the economy on the path of self-sustained and steady growth and under these circumstances living standards of the mass of the population may not improve at all. India’s growth performance has always been modest. METHODOLOGY: So we can express GDP as Y=C+I+G+NX This is called the income-expenditure identity. Savings is the excess
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Module 03 Written Assignment - GDP and Growth According to (McEachern‚ 2012) to calculate Gross Domestic Product (GDP) by the following four main categories: 1. Consumer Consumption – household purchases of final goods and services. 2. Gross Investment – purchase of new plants‚ equipment‚ buildings‚ residences and net worth of inventories. 3. Government Spending – the value of consumption and gross investment of goods and services. 4. Net Exports – value of U.S. exports of goods and services
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