Economics -Q36

Economics -Q36 Online Services


Question 1. Inflation
You gained access to the information on the composition of the consumer basket. Also, you know that the price index in 2016 was 240.


2016 Quantity Price
Housing 2 100
Transportation and energy 12 6
Food 35 4
2017 Quantity Price level
Housing 2 98
Transportation and energy 13 8
Food 36 4.5


  • Find the cost of the 2016 basket in 2016 prices
  • Find the cost of the 2016 basket in 2017 prices

  • Use the proportion method to find the CPI of 2017

  • Calculate inflation as the growth rate of CPI.


  • Your results are biased because the composition of the basket changed. Use chained inflation method to account for the change. That is, repeat (a)-(d), but use the 2017 basket. Then take the average between the inflation you find and your result in (d).

  • If one compares your result to the core inflation indicator, which one do you think will be higher?Explain the reason concisely(notice how prices of food and energy change).


You can read more about our case study assignment help services here.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services



Question 2. Inflation and sticky contracts
The workers negotiate a 2% raise in their nominal wage. They anticipate inflation of 2%.

  • The inflation amounts to 1%. Is the worker’s real wage lower or higher than they anticipated?

  • Given your answer to (a), what can you say about the firms’ profitability?



  • Do you expect firms to fire or hire workers?Would you expect the nominal wages to go up or down? Explain. (hint: think deflationary scenarios such as the Great Depression or Greece).


  • Assume that the economy was at the natural level of unemployment at the moment the wages were set. What kind of output gap do you think is taking place after the events of (c)? Is the cyclical unemployment positive or negative?



Question 3. International finance
Only the following international transactions take place in the US during the year 2017

  • Canada exports $50 worth of electricity to Buffalo
  • Delta carries 10 passengers across the Atlantic, of which 8 are foreigners. The ticket price is $5.

  • Foreign workers send $12 to their families home
  • K. Rowling collects $5 in royalties from selling her books around the US through an American publisher.

  • BMW builds a $20 factory in Alabama
  • Foreigners buy $5 worth of US Treasury bills.
  • Compose the statement of international transactions

Current account:



Capital incomes

Labor Incomes

Unilateral (current) transfers

Financial account:

Foreign direct investment

Portfolio investment

Loans made

Change in currency reserves



  • Calculate the trade balance, current account, and the financial account (assume there is no statistical discrepancy)


  • At the beginning of the year, the US owed $90 in foreign claims on the US-located assets. Calculate the percentage change in the US external debt.


Question 4. Economic growth and development

There are 150 workers with jobs and 200 units of capital in the country. The level of technology is 20. The output of the country follows the Cobb-Douglas production function

Marginal products of production factors and technology are given by


  • Calculate GDP and the marginal products and .



  • Two workers arrive into the economy and get jobs. Capital stays the same. The new GDP is 3574. Use your result from (a) in the growth accounting formula

to find the growth rate of technology.


  • Without any calculations, do you think the marginal product of capital increased or decreased in the country? Explain using the formula for marginal product.



  • List the features of society that you think increase economic growth


Product Code-Economics -Q36
Looking for best Economics -Q35 online ,please click here