Question
2. Calculating Inflation a. Fill in the blank boxes below: Nominal and Real Values of a House over Five Years Year 2010 2015 Percent Change
2. Calculating Inflation
a. Fill in the blank boxes below:
Nominal and Real Values of a House over Five Years | |||
Year | 2010 | 2015 | Percent Change |
Nominal Value | $250.000 | $260.000 | |
CPI (December) | |||
Real Value |
b. Using our formula for converting base prices into current prices, 1 , calculate 2 ( 1 ) = 2 the price in year 2 dollars.
c. Show your math and calculate the change in its real value using the nominal value and real values from 2015 dollars. Has the house's real value grown or declined? By how much?
d. Fill in the blank boxes below:
Congressional Budget Office's Nominal and Real GDP Forecasts | ||
Year | 2020 | 2025 |
Nominal Value | $20.900 | $26.500 |
GDP Deflator | ||
Real Value | $18.400 | $21.200 |
e. Using the values you found for the GDP deflator, find the total inflation (remember, this means percent change between two periods!) from 2020 to 2025.
f. What is the average annual inflation rate the CBO is expecting?
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Research Methods Design And Analysis
Authors: Larry Christensen
13th Edition
0205961258, 978-0205961252
