Economic – Money and Banking
- (30 points total – 5 points for each part) Using the following link to obtain CPI data (https://research.stlouisfed.org/fred2/data/CPIAUCSL.txt), find the value of the CPI in May of 1958 and answer the following questions:
- If the CPI basket in the base period cost $3,000, consistent with the example in the lectures, what would that same basket cost in May of 1958?
Don't use plagiarized sources. Get Your Custom Essay on
Economic – Money and Banking
Just from $13/Page
- If a person was making $40,000 in the base period, how much would they have to make during May of 1958 to have the same purchasing power as $40,000 has in the base period?
- Calculate the rate of inflation between May of 1958 and May of 1959 (show work).
- Using the data on one year interest rates (https://research.stlouisfed.org/fred2/data/GS1.txt), calculate the ex-post real rate of interest between May of 1958 and May of 1959.
- Calculate the ex-post real rate of interest from January 2012 to January 2013.
- Calculate the ex-ante real rate of interest from January 2012 to January 2013. To do so, you need data on expected inflation (https://research.stlouisfed.org/fred2/data/MICH.txt). Note that all data on expected inflation is based on expectations for the next 12 months – for example, to make sure we are on same page, verify that the expected rate of inflation from January 2010 to January 2011 was 2.8%.
- (10 points) During the second quarter of 1958, calculate the GDP gap. To do so, you need data on potential GDP (https://research.stlouisfed.org/fred2/data/GDPPOT.txt) and data on actual GDP (https://research.stlouisfed.org/fred2/data/GDPC1.txt). The GDP gap is calculated by taking the actual value of GDP minus potential GDP divided by potential GDP times 100. Also note the notation for quarters – for example: 2000 – 01 – 01 is the first quarter (Jan., Feb., March) of 2000 where 2000-10-01 is data for the fourth quarter of 2000 (Oct., Nov., Dec.).
Calculator
Our features
We've got everything to become your favourite writing service
Money back guarantee
Your money is safe. Even if we fail to satisfy your expectations, you can always request a refund and get your money back.
Confidentiality
We don’t share your private information with anyone. What happens on our website stays on our website.
Our service is legit
We provide you with a sample paper on the topic you need, and this kind of academic assistance is perfectly legitimate.
Get a plagiarism-free paper
We check every paper with our plagiarism-detection software, so you get a unique paper written for your particular purposes.
We can help with urgent tasks
Need a paper tomorrow? We can write it even while you’re sleeping. Place an order now and get your paper in 8 hours.
Pay a fair price
Our prices depend on urgency. If you want a cheap essay, place your order in advance. Our prices start from $11 per page.