1.

Checkboxes: Choose as many responses as relevant

(a) Although at first glance it may seem that CPI/RPI and GDPDeflator measure the same thing, there are a few key differences.Choose your relevant responses from the following options.

GDP Deflator includes only domestic goods and not anything thatis imported, CPI includes anything bought by consumers includingforeign goods

GDP Deflator is a measure of the prices of all goods andservices, CPI is a measure of only goods bought by consumers

The GDP deflator is a much broader price index than the ConsumerPrice Index

(b)A period when the economy shrinks is known as

recession.

contraction.

slump

inflation.

hyperinflation.

expansion.

(c) Growth theory supported by empirical evidence tells us thatto achieve faster economic growth, we must increase the growth rateof physical capital, the pace of technological advancement or thegrowth rate of human capital and openness to international trade..Which of the following can help to achieve these ojectives :

Stimulate research and development

Encourage spending

Improve the quality of education

Easy and fast access to new markets

(d) Which of the following are not true for CPI/RPI basedinflation rate?

CPI basket does not consider consumers substitution towardscheaper goods

CPI comapres the cost of a fixed basket of goods acrossdifferent years

CPI takes into account new products

CPI based inflation is well-suited for macroeconomic studies

CPI doesn't inlcude quality changes

(e) According to a World Bank report, economic performance inSenegal, one of the fastest growing African countries remainedstrong in 2019, with estimated real GDP growth of 7.0%. The growthmomentum recorded since 2015 is expected to continue due tocontinued public investment under the Senegal Emergence Plan. Inorder to pursue sustained economic growth it is essential for thecountry to improve its potential GDP. This can be achieved if

Aggregate supply of labor rises

Real wage rate falls

Existing labors become more productive

Average hours per worker rises

Demand for labor falls

(f) A concern for all developing economies, during the pandemicis the impact on the informal sector. If the government decides tostimulate the economy, to help the low and semi-skilled laborforce, what type(s) of investment strategy can they use

education programs

healthcare training facilities

infrastructure development projects

none of the options

Note : please provide the correct answers only, no need to givestep by step solutions. There can be multiple correct answers.