1. Ms. Park

2.  Jason Z  Cassie

3.  What is CPI?  A measure of price changes for a typical “shopping basket” of consumer products.  To determine what typical Canadian households buy, Statistics Canada surveys consumers’ buying habits every _________.

4.  CPI rose from 100 in 2010 to 115 in 2011. What is the inflation rate over the year?

5.  What is GDP deflator?  GDP deflator is an indicator of price changes for all goods and services produced in the economy

6.  Real income = Nominal income / ?  Real GDP = Nominal GDP/ ?

7.  Karen’s income rises from 22,000 to 23,000 during a year when the CPI rises from 100 to 108. If Karen’s own purchases roughly correspond to those in the representative “shopping basket,” what’s Karen’s real income? Does Karen now have lower or higher purchasing power?