We are making a historical study of the American economy from 1950 to 1980. Data
ID: 3181327 • Letter: W
Question
We are making a historical study of the American economy from 1950 to 1980. Data on prices, the labor force, productivity, and the GNP were collected. Note in the following table that the CPI has a base period of 1967, employment is in millions of persons, and so on. A direct comparison, therefore, is not feasible.
Using 1950 as the base period, make whatever calculations are necessary to compare the trend in the four series from 1950 to 1980. (Round your answers to 1 decimal place.)
We are making a historical study of the American economy from 1950 to 1980. Data on prices, the labor force, productivity, and the GNP were collected. Note in the following table that the CPI has a base period of 1967, employment is in millions of persons, and so on. A direct comparison, therefore, is not feasible.
Explanation / Answer
To make 1950 as base year, we divide every other value by the value of variable in base year. The following is the table obtained
As can be seen from the table ( From 1950 to 1980),
1 ) Consumer prices increased by 361-100= 261%
2) Labour force increased by 178-100 = 78%
3) Productivity increased by 253-100 = 153%
4) GNP Increased by 920-100 = 820%
Year Consumer Total Index of Gross Price Labor Productivity National Index Force in Manufacturing Product (1967 = 100) (millions) (1967 = 100) ($ billions) 1950 100 100 100 100 1967 121.80268 109.375 141.844 297.2353 1971 155.054811 98.95833 165.5319 381.1868 1975 215.590743 148.9583 172.6241 516.0823 1980 361.997564 178.125 253.3333 920.7687Related Questions
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