Chapter 8 Measuring Total Economic ActivityHomework Questions

1. This analysis is designed to demonstrate how the inflation of the late 1970's and early 1980's caused a decrease in the standard of living
     for the average person living in the United States. Using the data below, calculate a consumer price index, real disposable personal income,
     nominal per capita disposal personal income and real per capita disposable personal income. Use 1981 as the base year. Round CPI to 
     whole numbers and others to thousands of dollars. Data given represents actual data for the period.


 

 

 


Year

 

Cost of a Basket of Goods

 CPI

DPI in Billions

Real DPI 1991 $'s

Population in Millions

Nominal/ Capita DPI

Real/ Capita DPI

1978

$400

_______

$1,551

_______

223

_______

_______

1979

445

_______

1,729

_______

225

_______

_______

1980

505

_______

1,918

_______

228

_______

_______

1981

557

_______

2,128

_______

230

_______

_______

1982

592

_______

2,261

_______

232

_______

_______

1983

611

_______

2,428

_______

235

_______

_______

1984

637

_______

2,669

_______

237

_______

_______

2. Explain the economic ramifications of your answer to Question #1

 

 

 

 

 

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