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Consumers confidence

By the looks of things I need the worked answers to ” Running Head: CONSUMER’S CONFIDENCE1 Consumer’s Confidence Student’s Name Institution CONSUMER’S CONFIDENCE 2 Consumer’s Confidence Question 1 The consumer’s confidence increase due to…”The questions I need assistance with are..Answer the two following questions:Suppose an economy has only three goods, and the typical family purchases the amounts given in the following table. If 2005 is the base year, then, what is the CPI for 2012? Show all working out.Explain how the CPI is constructed, and discuss any weaknesses with this measurement technique.Starting from long-run equilibrium, use the basic (static) aggregate demand and aggregate supply diagram to show what happens in both the short run and the long run when there is a decline in wealth. Explain your diagram.Watch the following video clip, A big lift in consumer confidence but how much is showing through on the shop floor and answer the following questions. What has been some of the macroeconomic impacts on Harvey Norman. Use economic analysis to describe how this impacts on profits (Hint: what type of market structure does Harvey Norman operate in?).If consumer confidence is rising, then use economic analysis to describe how this impacts on the economy. Given the level and growth of sales of Harvey Norman what is the more likely scenario.Thinking about the zero level of investment in new Harvey Norman stores and the lower/patchy sales growth. In what stage of the cycle would this happen. Why should we be careful using Harvey Normans sales growth as the only source of information to determine if Australia is in a period of slow growth? What information would be useful to verify this?How does monetary policy affect the share market?How could the existence of unemployment benefits or other transfer programs reduce the severity of an economic contraction?Refer to the figure below and answer the following questions. Given that the economy has moved from A to B what would be the appropriate fiscal policy to achieve potential GDP and why?If fiscal policy is successful at moving the economy from point B to equilibrium at potential GDP, what happens to unemployment and what impact will this have on the government’s budget?Watch the following video clip, CPI: A surprise jump in inflation to a 2-year-high appears to have reduced the chances of further official interest rate cuts in Australia and answer the following questions. What were the underlying causes of the stronger than expected inflation rate (what goods experienced a rise in price and what goods experienced a fall in price? Thinking about the CPI basket do you think that a rise in these goods would influence CPI?How does the lower Australian dollar contribute to inflation?Explain how the changes in the prices of goods in part a, and the change in the exchange rate might influences the RBA’s position on changing interest rates. How does the changes in the unemployment rate moderate this position?As you could tell I’m in desperate need of your help and have limited access to this page as my financial will not allow me to spend as much as I’d like.Thank you in advance. Further a) What were the underlying causes of the stronger than expected inflation rate (what goodsexperienced a rise in price and what goods experienced a fall in price? Thinking about the CPI…

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