Question
Course: Introduction to Economics - Price Index, Money and Inflation Please, helps with two questions: 1) Analyze the following sentence: Ivan Zamorano, a famous Chilean
Course: Introduction to Economics - Price Index, Money and Inflation
Please, helps with two questions:
1) Analyze the following sentence: "Ivan Zamorano, a famous Chilean soccer player, had a much lower salary in his time compared to today's soccer stars. In 1995, his salary was $10 million; in 2019, however, players earn on average $20 million". Assume constant inflation over the entire period equal to 3%.
2) What are the differences between calculating the price level from the CPI and calculating the price level from the GDP deflator? In which situations is it better to use one and NOT the other?
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