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Once we have monthly data on a price index we can evaluate the inflation. In most nations, the percentage change in price index during one month is small. Hence it is more common to calculate inflation each month based on a complete year. For instance, on 1 January 2010, inflation is calculated as percentage change in the price index between 1 January 2010 and 1 January 2010. On 1 February 2010, inflation is evaluated as the percentage change in price index between 1 February 2010 and 1 February 2010 and so on. Figure belowillustrates Germany as an instance.
Figure
Inflation in Germany 1992 - 2010. Source: OECD.
Determine Velocity Approach to Money Demand. The Velocity Approach to Money Demand: The velocity of money: V = (P × Y)/ M The real quantity of money demanded is pr
Collecteconomic data for three countries: Australia, China and Greece.The data is toobtainedfrom official sources as time series forthe key macroeconomic variables. These arereal G
Write the compensation principal of socitovsky
THE GOALS OF MACROECONOMIC POLICY Economic analysis attempts to explain why problems arise in the economy and how these problems can be dealt with. It is, therefore, indispens
However, these results should be approached with due caution. The limitations and problems associated with VAR modelling have been outlined in this paper, therefore these observati
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what is phillips curve
Because the structure of the personal income tax is progressive, a larger share of income is taxed at higher rates as real income increases. Therefore, economic growth automaticall
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