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... is the GDP deflator The GDP deflator is similar to the PCE deflator except the GDP deflator uses the prices from all the goods and services included in GDP 67 68 CHAPTER Answers to the Study Plan... prices is: ($4 10) + ($6 5) = $70 The value in base-year prices is $40 + $ 25 (provided in the question), which equals $ 65 So the CPI is ($70/$ 65) 100 = 107.7 75 76 CHAPTER c The inflation rate... 153 .7 million, so the labor force participation rate is ( 153 .7 million/237.9 million) 100, which equals 64.6 percent c Employment -to- population ratio The employment -to- population ratio is 58 .4