PLEASE HELP ME TO ANSWER STEP BY STEP. DEATAILY AND CLEARLY. The consumer price

Question

PLEASE HELP ME TO ANSWER STEP BY STEP. DEATAILY AND CLEARLY.

The consumer price index (CPI) and aggregate real output (Y) are presented as follows: Find the rate of inflation for each year beginning 1979. Find the short term growth rates and the compounded growth rate for the entire period. What is a business cycle? Identify its phases and comment on the economic problems associated with each phase. Discuss the appropriate fiscal and monetary policy tools required to deal with each problem. (Fiscal... taxes & government spending) (Monetary...money supply &. interest rate)

Explanation / Answer

1978 1979 1980 1981 1982 CPI 65.2 72.6 82.4 90.9 96.5 Y 575.2 590.7 578.6 570.2 581.1 Inflation 11% 13% 10% 6% Short term growth(STG) 3% -2% -1% 2% let R=(1+STG) 103% 98% 99% 102% Compunded growth rate for compunding we R of given years upto current years for eg 1980= 103%*98%*99% A 1.005911 0.991307 1.010257 B 1.002951 0.995644 1.005115 C 0.002951 -0.00436 0.005115 compound growth workings A for compunding we R of given years upto current years for eg 1980= 103%*98%*99% B this is the Root n of A For two tears it is root two , for three

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