Steffie11345
Jan 9, 2007, 01:25 PM
Defense: 270.2 (1998) 454.1(2004)
Non-Defense : 281.9 (1998) 441.4(2004)
Composite outlay deflator(2000=1.00)
Defense: .9499(1998) 1.1264(2004)
Nondefense: .9623(1998) 1.0834(2004)
A. Compute the growth rates for defense and nondefense outlays in current year dollars from 1998 to 2004. Divide that growth into its real and price components.
C. Suppose prices are expected to change between 2004 and 2008 at the same rate they did between 1998 and 2004. What level of defense and nondefense outlays would leave real purchasing power the same in 2008 as it was in 2004?
Non-Defense : 281.9 (1998) 441.4(2004)
Composite outlay deflator(2000=1.00)
Defense: .9499(1998) 1.1264(2004)
Nondefense: .9623(1998) 1.0834(2004)
A. Compute the growth rates for defense and nondefense outlays in current year dollars from 1998 to 2004. Divide that growth into its real and price components.
C. Suppose prices are expected to change between 2004 and 2008 at the same rate they did between 1998 and 2004. What level of defense and nondefense outlays would leave real purchasing power the same in 2008 as it was in 2004?