This essay focuses on aggregate demand or aggregate supply.Construct the price index for a “fruit basket” in each year using 2003 as the base year.
#3 Compute the inflation rate for fruit prices from 2001 to 2004

aggregate demand or aggregate supply

Compose a two-page paper. Address the following subject matter in your paper:  CHAPTER 9
Self-Check Questions:
#1

#2 Construct the price index for a “fruit basket” in each year using 2003 as the base year.
#3 Compute the inflation rate for fruit prices from 2001 to 2004

Review Questions: 14 and 15, treat as 1 question
#14 Why does “substitution bias” arise if we calculate the inflation rate based on a fixed basket of goods?
#15 Why does the “quality/new goods bias” arise if we calculate the inflation rate based on a fixed basket of goods? treat as one question

Critical Thinking:
#24 Why is the GDP deflator not an accurate measure of inflation as it impacts a household?

Chapter 10
Review Questions:
#22 If imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed imports?  #23 What is included in the current account balance?

Critical Thinking:
#34 If a country is a big exporter, is it more exposed to global financial crises?
Chapter 12
Review Questions: #10 From a Keynesian point of view, which is more likely to cause a recession: aggregate demand or aggregate supply, and why?
#11 Why do sticky wages and prices increase the impact of an economic downturn on unemployment and recession?
#12 Explain what economists mean by “menu costs.”