Theory of money questions | form five Economics

(3213) Question Category: Long answers

Discuss the uses of price index.

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(3214) Question Category: Long answers

What are the problems of measuring price index?

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(3215) Question Category: Mathematical Calculation

Given a table below:

Year Consumer price index
1982 289.1
1983 298.4
1984 311.1
1985 322.2

Find

  1. The rate of inflation in 1985
  2. The increase in price between 1982 and 1985.

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UNSOLVED

(3216) Question Category: Mathematical Calculation

  1. If the money GNP of an economy rose from $5000million to $5500million between 1985 and 1986 while the price index rose from 100 to 110 during the same period, what was the change in real GNP?
  2. Suppose that the nominal GNP of an economy was Tshs.2billion in 1982 and Tshs2.1billion in 1983, if the price index was 120 in 1982 and 126 in 1983, then What was the real GNP?.

Answer / Solution

UNSOLVED

(3217) Question Category: Mathematical Calculation

Given a table below which shows hypothetical basket of purches.

  Year 1 prices in $ Year 2 in $ Price relatives Price increase
Fish 1.20 1.60 - -
Rice 0.80 1.20 - -
Beans 0.40 0.50 - -
Salt 0.60 0.30 - -
  1. Fill in the blanks and find the price change of each commodity
  2. Find the average price change.

Answer / Solution

UNSOLVED


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