Instructions:
You can submit an individual or group assignment. If you submit a group assignment, there must be no more than FIVE students in your group (coming from the section of MGEB05 this term) and you just have to submit ONE copy.
A PENALTY OF 10% OF THE TOTAL MARKS will be imposed if you FAIL TO DO EITHER OF THE FOLLOWING (20% if you fail to do both):
1)Submit this page as your cover page (complete the information above)
2)STAPLE your assignment (paper clips are NOT accepted)
Label your graph(s); otherwise, marks will be subtracted.
No credit will be given if you do not show your work (i.e. don’t simply say the answer is 3 write down enough of the steps you used to arrive at this answer).
Your answer should be structured in a way such that those that know little about economics will have no difficulty understanding your argument/answer.
DO NOT USE any notations that are not used in lectures. If you use your own notations and/or abbreviations that are not being used in lectures, you will receive a grade of zero for that question.
Notes:
Keep your answers to at least 2 decimal places.
a)Use the expenditure approach to solve for nominal: GDP, private sector consumption, and net exports for all three years.
b)Compute the GDP deflator for all three years, using year 1 as the base year.
c)Find the CPI for all three years, using year 1 as the base year.
d)Did CPI and GDP deflator move to the same direction? If not, why?
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