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Illustrate an example of Consumer Price Index
For instance, if we spend twice as much on apples as on pears, apples would have twice the weight in basket. The precise details of composition of basket and how CPI is computed are complicated and vary somewhat between nations. Figure below displays CPI for Germany after reunification starting at January 1991. This data has 2005 as reference year. This means that CPI is constructed in such a way that CPI is exactly equal to 100 on average during 2005.
what are the opportunity cost?
A company is researching the effectiveness of a new web site design to decrease the time to access a website. Five web site users were randomly selected and their times (in seconds
A system of private property rights A. enhances economic growth by creating incentives to the Fed to maintain stable prices. B. enhances economic growth by increasing the pro
From stock and Watson 3rd edition introduction to econometrics Using the data set Teaching Ratings described, carry out the following exercises. a) Run a regression of Course
Recently, a bank was trying to decide what fee to charge for "expedited payments" - payments that the bank would transmit extra-speedily to enable customers to avoid late fees on c
Give a brief description of the transmission mechanism 1. When the central bank target rate increases, other interest rates in the economy will increase (and the money supply
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INDEX NUMBERS OF PRODUCTION Among the commonly used economic indicators to monitor current trends in the economy are indices of production. The main aggregative indices used t
what is the use of national income statistics as an indicator for a country''s standard of living?
A significant argument for the augmentation has to do with concept of money illusion. Money illusion means that you care about nominal rather than real amounts. Imagine that your s
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