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The GDP deflator in Economy land is 200 on January 1, 2010. The deflator rises to 242 by January 1, 2012, and to 266.2 by January 1, 2013.
a. What is the annual rate of inflation over the two-year period between Januarys? 1, 2010, and January 1, 2012? In other words, what constant yearly rate of Inflation would lead to the price rise observed over those two years?
b. What is the annual rate of inflation over the three-year period from January 1, 2010, to January 1, 2013?
c. In general, if P0 is the price level at the beginning of an n-year period, and Pn is the price level at the end of that period, show that the annual rate of inflation? Over that period satisfies the equation (1 + ? )^n = (Pn / P0)
Please select either question (a) or question (b). Do NOT answer both questions. a. Mr. William Randolph Hearst is an entrepreneur based in California. He owns many newspaper
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1. An unemployed individual decides to spend the day fishing. The opportunity cost of fishing is equal to A) The cost of bait and any other monetary expenses. B) Zero, becaus
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