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5) Do y
1) What was the YoY pace of Inflation in Q4 2022?
7% =(C18-C14)/C14
3) Which period out of the shared data would you describe as ‘Economic boom’ and why?
Use the above data for sharing any specific observations.
115
GDP
110
105
100
95
90
85
80
12/1/20…
12/1/20…
12/1/20…
12/1/20…
3/1/2019
6/1/2019
9/1/2019
3/1/2020
6/1/2020
9/1/2020
3/1/2021
6/1/2021
9/1/2021
3/1/2022
6/1/2022
9/1/2022
3/1/2023
6/1/2023
9/1/2023
The second quarter of 2021 (3/31/2021-6/30/2021) can be described as 'Economic boom'.
As the GDP was above trend line with maximum value of 108.66 which is higher than
potential trend line.
4) How would you expect Alpha’s Central bank to act during the entire period in terms of
rate setting?
Ans. The GDP looks good as it seems to grow around 3% annualy, but counsumer price
index (CPI) grows by around 7% which is way above 3% and shows higher inflation. Thus
Central bank of Alpha's should higher interest rate to control liquidity and demand that will
eventually lower downs CPI.