You must show all work, step by step and complete the work in the attached spreadsheet. Only Complete questions #2 & #3, not question #1.
The summary worksheet should list the final answers, and the work should be shown on each “Problem” worksheet
2. The management of Ingall’s stores in Oklahoma City wants to construct a weighted index of Business Activity for the metro area. Three
series (or variables) will be used: Retail Sales, Bank Deposits and Employment. Assume equal weights (1/3) for each item.
Seasonally adjusted data for the first 2 months of the year are noted in the table below. Construct the Business Activity Index.
Retail Sales Bank Deposits
Month ($ mil) ($ bil)
January 8.00 20.00
February 6.40 21.00
a. _________________ Business Activity index
b. _________________ Business Activity increasing or decreasing
3. Suppose that the Producer Price Index (PPI) and the sales at Hoskin’s Wholesale Distreibutors for 2013 and 2018 were as decribed in the table.
Year PPI Sales ($)
2013 127.9 2,400,000
2018 169 3,500,000
a. _________________ Hoskin’s 2018 sales measured in 2013 dollars. (Deflated sales, Real sales)
b. _________________ Real gain or loss in sales – measured in 2013 $
c. _________________ Amount that went to inflation as measured by the PPI
d. _________________ Amount that went to inflation measured in dollars