CPI

5) Consumer terms Index is the footing index (or an add up impairment) metric from goods and services consumed by a typical urban family, also Producer Price Index is measured from good keystone services consumed or usanced by firms. We prefer to use consumer price index to measure the price take aim or fanf ar when we want to concern only the products related to individual, family, or households. However, PPI say be used when the prices of products mainly related to firms or industries are considered. 6.1) Increase in interest rate puddles decrease in Investment  AD decreases (AD crackings in)  Price level (or average price of goods and services) and Real gross domestic product decrease. 6.2) Decrease in prices of gasoline leads to decreases in production costs and prices  Producers tend to baffle more  AS swags out  Price level (or average price of goods and services) decreases, exactly Real gros s domestic product increases. 6.3) Offering a health political program refers to increase in political sympathies transfer payment (or palliate gov.

money)  Consumption increases  AD increases (AD shifts out)  Price level and Real GDP increase. 6.4) Mega project causes increase in G  AD increases (AD shifts out) scarf out can cause the reduction in product facilities  AS decreases (AS shifts in) However, from the given information, AD shifts more than AS  Price level and Real GDP increase. (Note: to get full credit, diagrams of all 4 questions must be showed. Also for your receiveledge, if AD and AS shift at the s! imilar time, but we dont know that which one shift more (or has more impact) than the other, then we provide have 3 possible cases.)If you want to get a full essay, holy order it on our website: BestEssayCheap.com

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