1.A person is a lobster fisherwoman and spends $50 a year on purchasing 5 kilos of lobster at a store in 2010 ( the base year) and spends $60 a year on purchasing 4 kilos of lobster at a store in 2013. She earns her living being a fisherwoman of lobster and her price for what she catches is $5 per kilo in 2010 and $6 per kilo in 2013: (a) What is the inflation rate for what she pays for lobster in the store in 2013 compared to the base year in 2010?

2.Provide a brief definition and an example or graph, as required, of each of the following: A) Tariff - a definition and a example (not a graph) of the effect of a tariff on imports. B) The formula for nominal GDP and the equation for nominal GDP and real GDP

C) What happens to the US Dollar when the British pound falls to 1 pound =1USD from 1 pound= 1.30 USD? Provide an example and a calculation.

D) What is the effect on demand NOW if consumer expectations of inflation are that inflation would be higher in future quarters? Provide an example with calculations.

Answer rating: 100% (QA)

To calculate the inflation rate for what the lobster fisherwoman pays for lobster in the store in 2013 compared to the base year in 2010 we can use th... View the full answer