Problem
Part 1. Suppose that the consumers buy 5 apples and 3 oranges every year (basket of goods), and the price of each one was showed as the following:
|
2014
|
2015
|
2016
|
|
Apple
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$2
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$3
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$4
|
|
Orange
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$3
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$4
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$5
|
If we considered 2014 is the base year, then:
1- What is the value of Consumer Price Index (CPI) at 2014, 2015, and 2016?
2- What is the Inflation Rate at, 2015, and 2016?
3- In your opinion, how the inflation effects on the economic activities.
Part 2. Suppose, that the Bureau of Labor Statistics issued statistics about the adult population and labor as the following:
Adult Population: 20 million, Labor- Force: 13 million, Employed Worker: 11.8 million, then:
1- What is the number of unemployed?
2- What is the Unemployment Rate?
3- What is the Labor- Force participation Rate?
4- How can the Government reduce the effects of Unemployment Rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.