EXAM 2

Question 1

FORMULA FOR INFLATION RATE

Answer 1

(100)(GDP DEFLATOR B - GDP DEFLATOR A / GDP DEFLATOR A)

Question 2

FORMULA FOR GDP DEFLATOR

Answer 2

(100)(NOMINAL GDP/REAL GDP)

Question 3

FORMULA FOR CSPI

Answer 3

(100)(COST OF BASKET B / COST OF BASKET A)

Question 4

FORMULA FOR CSPI % CHANGE

Answer 4

(100)(CSPI B - CSPI A / CSPI A)

Question 5

CSPI SYNONYMOUS WITH

Answer 5

INFLATION

Question 6

INFLATION SYNONYMOUS WITH

Answer 6

CSPI

Question 7

FORMULA FOR CPI

Answer 7

(COST BASKET YEAR CURRENT * 100) / (COST BASKET BASE YEAR)

Question 8

FORMULA TO ADJUST FOR INFATION

Answer 8

(NOMINAL)(CURRENT INDEX / ORIGINAL INDEX)

Question 9

FORMULA FOR REAL INTEREST RATE

Answer 9

(NOMINAL INTEREST RATE - INFLATION RATE)

Question 10

FORMULA FOR PURCHASING POWER

Answer 10

(INITIAL DEPOSIT / PRICE)

Question 11

FORMULA FOR % CHANGE IN PURCHASE POWER

Answer 11

(100)(NEW QUANTITY TICKETS - ORIGINAL QUANTITY / ORIGINAL QUANTITY)

Question 12

FORMULA FOR LABOR FORCE PARTICIPATION RATE

Answer 12

(100)(LABOR FORCE / ADULT POPULATION)

Question 13

FORMULA FOR LABOR FORCE PARTICIPATION RATE

Answer 13

100 * (LABOR FORCE / ADULTS)

Question 14

FORMULA FOR U4 UNDERUTILIZATION

Answer 14

(100) (UNEMPLOYED + DISCOURAGED / LABOR FORCE + DISCOURAGED)