Problem 1: Explain briefly how to convert nominal variables into real variables?
Problem 2: Suppose nominal income in year 2000 is $3000 and the price index in year 2000 is 150, what is the real income of year 2000?
A. Explain briefly how to convert nominal variables into real variables?
B. Suppose nominal income in year 2000 is $3000 and the price index in year 2000 is 150, what is the real income of year 2000?
Problem 3: Suppose the nominal output this year is $1000 billion while the current price level is measured at 120, what is the real output this year?
Problem 4: Jane makes a loan at 3% interest rates. The inflation rate is 2%. What is the real interest rate?