Homework (Ch 11) Back to Assignment Attempts: 08 Average: 0.8/2 2. Alternative price indexes Because there...

Homework (Ch 11) Back to Assignment Attempts: 08 Average: 0.8/2 2. Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. using The CPI for this year is calculated by dividing the by the using and multiplying by 100. However, the GDP deflator reflects only the prices of all goods and services Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Shows up in the... GDP Deflator CPI Scenario An increase in the price of a Waterman Industries deep water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers BI 06 40 O

Ans) the answers to the blanks are :

1) value of all goods and services produced in the economy this year

2) this years prices

3) value of all goods and services produced in the economy this year

4) the base years prices

5) bought by consumers.

The CPI of this year is calculated by diving the price of the consumption basket using the current year by the price of the same consumption bundle by base year and multiplying by 100. However the GDP deflator reflects only the prices of goods and services of the current year.

an increase in the price of a waterman industries deep water reel,which is a commercial fishing product used for deep sea fishing, made in us but not bought by us consumers - this will deflect GDP deflator.

Earn Coin

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
• 2. Alternative price indexes Because there isn't one single measure of inflation, the government ...

1. 2. Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The CPI for this year is calculated by dividing the using by the using and multiplying by 100. However, the GDP deflator reflects only the prices of all...

• 2. The GDP deflator versus the consumer price index Because there isn't one single measure of...

2. The GDP deflator versus the consumer price index Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the gross domestic product (GDP) deflator. The GDP deflator for this year is calculated by dividing the by the and multiplying by 100 USing using However,...

• 2. Alternative price indexes Because there isn't one single measure of inflation, the government and researchers...

2. Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the using using and multiplying by 100. However, the CPI reflects only the prices of all goods and...

• prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer...

prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPD and the GDP deflator using However, the CPI reflects only the prices of all goods and services Indicate whether each scenario will affect the GDP deflator or the CPI for the United states, Check all that apply Shows up in GDP Deflator CPI althout saying

• 1. Calculating inflation using a simple price index Consider a fictional price index, the College...

1. Calculating inflation using a simple price index Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student’s annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2014, 2015, and 2016. The cost of each item in the basket and the total cost of the basket are shown for 2014. Perform these same calculations for 2015 and 2016,...