7. Index numbers associated with the growth of unemployment during an eight-year period are shown in...

 

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7. Index numbers associated with the growth of unemployment during an eight-year period are shown in Table 3.18. (a) What are the base years for the two indices? (b) If the government had not switched to index 2, what would be the values of index 1 in years 7 and 8? (c) What values would index 2 have been in years 1, 2, 3, 4 and 5? (d) If unemployment was 1.2 million in year 4, how many people were unemployed in years 1 and 82 Table 3.18 Index 1 Index 2 Table 3.19 Year 1 Price Inflation 100 2 1 230 95 3 2 242 4% 105 4 110 3 Year 8. The prices of a good at the end of each year between Year 1 and Year 6 are listed in Table 3.19, which also shows the annual rate of inflation. 251 3% 5 119 6 127 100 4 257 2.5% 7 5 270 2% 112 118 6 284 2% (a) Find the values of the prices adjusted to the end of Year 2, correct to two decimal places. Hence, calculate the index numbers of the real data with Year 2 as the base year. Give your answers correct to one decimal place. (b) If the index number of the real price for Year 7 is 109 and the rate of inflation for that year is 2.5%, work out the nominal value of the price in Year 7. Give your answer rounded to the nearest whole number. (c) If the index number of the real data in Year 0 is 95.6 and the nominal price is $215, find the rate of inflation for Year 1. Give your answer correct to one decimal place. 7. Index numbers associated with the growth of unemployment during an eight-year period are shown in Table 3.18. (a) What are the base years for the two indices? (b) If the government had not switched to index 2, what would be the values of index 1 in years 7 and 8? (c) What values would index 2 have been in years 1, 2, 3, 4 and 5? (d) If unemployment was 1.2 million in year 4, how many people were unemployed in years 1 and 82 Table 3.18 Index 1 Index 2 Table 3.19 Year 1 Price Inflation 100 2 1 230 95 3 2 242 4% 105 4 110 3 Year 8. The prices of a good at the end of each year between Year 1 and Year 6 are listed in Table 3.19, which also shows the annual rate of inflation. 251 3% 5 119 6 127 100 4 257 2.5% 7 5 270 2% 112 118 6 284 2% (a) Find the values of the prices adjusted to the end of Year 2, correct to two decimal places. Hence, calculate the index numbers of the real data with Year 2 as the base year. Give your answers correct to one decimal place. (b) If the index number of the real price for Year 7 is 109 and the rate of inflation for that year is 2.5%, work out the nominal value of the price in Year 7. Give your answer rounded to the nearest whole number. (c) If the index number of the real data in Year 0 is 95.6 and the nominal price is $215, find the rate of inflation for Year 1. Give your answer correct to one decimal place.