Define inflation, At the end of the year, you discover that

Define inflation

Assignment Help Microeconomics

Reference no: EM13175557

Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: fish, fruit, and meat. Suppose that on January 1, 2010, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per pound. At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $1.50 and meat prices had actually fallen to $2.00. Can you say what happened to the overall "price level"? How might you construct a measure of the "change in the price level"? What additional information might you need to construct your measure?

Reference no: EM13175557

Questions Cloud

Explain maturity extension program and reinvestment policy : Under the maturity extension program, the Federal Reserve sold or redeemed a total of $667 billion of shorter-term Treasury securities and used the proceeds to buy longer-term Treasury securities, thereby extending the average maturity of the secu..

State what is the empirical formula of the compound : An unknown compound has a forula of CxHyOz. You burn 0.1523 g of the compound and isolate 0.3718 g of CO2, and 0.1522 g of H2O. What is the empirical formula of the compound?

State the mass of the dirty crucible is recorded : The crucible is not fired, as the procedure suggests, but had retained some impurities from previous use. The mass of the "dirty" crucible is recorded.

State what is the balanced equation for the main reaction : what is the balanced equation for the main reaction? equation for important side reactions? why was ethanol, not methanol, used as the organic solvent?

Define inflation : At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $1.50 and meat prices had actually fallen to $2.00.

Why does methylbenzoate dissolve in concentrated sulfuric : 1) Why does methylbenzoate dissolve in concentrated sulfuric acid? 2) Give a detailed mechanism for the reaction (Be Specific) 3) Expalin in detail why you obtain meta substitution and not ortho or para substitution.?

Percentage of employee compensation is employee benefits : Employee benefits have become more and more an important part of employee compensation. According to the text, what percentage of employee compensation is employee benefits?

Should furniture company hand customers a form 1099- misc : Was the free furniture in the form of a discount or rebate taxable, or should the furniture company hand the customers a Form 1099-MISC?

Draw the structure of the product likely to be obtained : Draw the structure of the product likely to be obtained from the reaction between acetoacetic ester, bromobenzen & 2 molor equivalents

User Account

All Pages