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[Econ] Inflation,HELPPPP!!!

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Inflation,HELPPPP!!!

1.CPI,GDP deflator 過100系唔系就系inflation,定系要比較舊年,increase rate

2.Nominal同real interest rate ge分別系唔系一個consider inflation,一個唔consider price level

3.請問C點解正確,點解Purchasing power in year2 is lower year 3,year 3唔系有deflation咩(問題在下圖)

Please help


[ 本帖最後由 dumbo101 於 2015-4-23 07:41 PM 編輯 ]
   

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1) inflation refers to persistent increase in general price level
     there must be a persistent increasing trend of gdp deflator >100 for a few yrs
2)nominal interest rate = real int rate + %change in price level
3) no photo: o)
hope it helps!: )

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Thanks,頭先唔記得up相

[ 本帖最後由 dumbo101 於 2015-4-23 07:42 PM 編輯 ]

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如果我寫一個consider inflation,一個唔consider price level,會唔會有分

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回覆 4# dumbo101 的帖子

should be ok u just had ur test or r u a dse student?: )

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just had my test, so difficult and dun had enough time

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Btw do u know why C is wrong, i hv just uploaded the photo

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回覆 7# dumbo101 的帖子

sorry using mobile so cant see the photo... would u mind pming me? perhaps it may help?

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In my point of view,(1) inflation is a persistent increase in general price level but 1 year is enough, where 1 year can be treated as long-term. (2) is bacially correct. (3) would u mind upload the photo again so I can help u?

[ 本帖最後由 petergarylee 於 2015-4-24 07:37 AM 編輯 ]

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sorry,i dont know how to upload photo. do u mind me typing out the question
Year 1's GDP deflator is 100, year 2's is 110,year 3 is 100
Which of the following statement is correct?
C.The purchasing power of money in year 2 is lower than that in year1 and 3.

I dont know why C correct. I dont know why year 2 is lower than year 3, isnt there is deflation in year 3? the purchasing power in year2 should be higher than year 3.

THanksss

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