Answer to Question #112615 in Macroeconomics for Salim aminu

Question

3- Consumption basket consumed by an average consumer and the price level of each good in the basket for 2019 and 2020 in Berberistan are given below; (Take 2019 as a base when necessary) (20 pts)


Price levels

quantity
2019
2020
Coffee
4
5
8
Tea
5
4
5
Cheesecake
10
10
15

a) Calculate the CPI value for 2019.
b) Calculate the CPI value for 2020.
c) Calculate inflation rate from 2019 to 2020.


4- Explain the effect of an improvement in productivity on potential real GDP and real GDP per capita using macroeconomic production function and labor market equilibrium. (20 pts)






5- We have the following data from loanable funds market for Berberistan. Answer the following questions. (20 pts)

Real interest rate
Loanable funds demanded
Loanable funds
supplied
(percent per year)
(trillions of dollars)
3
10
4
4
9
5
5
8
6
6
7
7
7
6
8
8
5
9
9
4
10

Answer 1

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