2. Alternative price indexesBecause there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of howprices 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 theby theusingusingand multiplying by 100.However, the CPI reflects only the prices of all goods and servicesIndicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply.Shows up inthe...GDPScenarioDeflatorCPIAn increase in the price of a German-made car that is popular among U.S. consumersA decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S.but not bought by U.S. consumersGrade It NowSave & ContinueContinue without saving

The GDP deflator for this year is calculated by dividing the value of all goods produced in an…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Economists in the Statistics Bureau decide to check the CPI substitution bias. To do so, they conduct a Consumer Expenditure Survey in both 2018 and 2019. The table shows the results of the survey. It shows the items that consumers buy and their prices. 2018 2019 Item Quantity Price Quantity Price The Statistics Bureau fixes the reference base year as 2018. Burgers 30 $1 35 $1 Chicken 35 $4 25 $6 Calculate the CPI in 2019 if the CPI basket contains the 2019 quantities. The CPI in 2019 if the CPI basket contains the 2019 quantities is >>> Answer to 1 decimal place. Question Viewer Enter your answer in the answer box. MacBook Air DII DD F11 F10 000 000 888 F9 80 F7 F8 F6 F5 F4 F3 esc F2 F1 & % ! @ 6 7 8 2 3 4 5 1 | P Y U Q W E R tab K 云 00 %24
Define consumer price index And tell why it is important to the economy.
A typical family on Sandy Island consumes only juice and cloth. Last year, which was the base year, the family spent $40 on juice and $20 on cloth. In the base year, juice was $4 a bottle and cloth was $5 a length. This year, juice is $8 a bottle and cloth is $2.5 a length. Calculate a. The CPI basket. b. The CPI in the current year. c. The inflation rate in the current year. I'm not sure if the final answer is 50 or -50, please help by showing the steps. Don't answer by pen paper and don't use chatgpt otherwise we will give dounvote
Discuss how does the GDP relate to CPI, and how the GDP and CPI contribute toinflation. Write a short report with NO more than 400 words. You should relate the findings based on the line graphs of the GDP and CPI for Ethiopia and Germany, attached in the images.
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 by the using and multiplying by 100. 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 the... GDP Scenario Deflator CPI A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. but not bought by U.s. cons consumers An increase in the price of a Japanese-made television that is popular among U.S. consumers
Solve all subparts correctly and explains
Consider a fictional price index, the University Student Price Index (USPI), based on a typical university student's annual purchases. Suppose the following table shows information on the market basket for the USPI and the prices of each of the goods in 2016, 2017, and 2018. The cost of each item in the basket and the total cost of the basket are shown for 2016. Perform these same calculations for 2017 and 2018, and enter the results in the following table. 2016 2017 2018 Price (Dollars) Cost (Dollars) Price (Dollars) Cost (Dollars) Quantity in Basket Notebooks 10 3 30 3 Calculators 1 75 75 80 Large coffees 300 2 600 2 Energy drinks 75 2 150 4 Textbooks 8 90 720 110 Total cost 1,575 100 Price index Suppose the base year for this price index is 2016. In the last row of the table, calculate and enter the value of the USPI for the remaining years. Between 2016 and 2017, the USPI increased by %. Between 2017 and 2018, the USPI increased by % Which of the following, if true, would…
An economy has the following real GDP and nominal GDP price index between 1989 and 1990:year Real GDP Nominal GDP 1989 ...... $1,000B........... $1,200B 1990........$1,050B............$1,386B a) what is the GDP price index for 1989? b) what is the GDP price index for 1990? c) what is the inflation rate as measured by the GDP price index between 1989 and 1990?
Refer to Table below. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): Calculate the the GDP deflator for 2015 and 2016 and the rate of inflation between these two years. Year Nominal GDP Real GDP 2014 $13,399 $12,976 2015 14,078 13,254 2016 14,441 13,312
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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 by the using and multiplying by 100. 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 the... GDP Scenario Deflator CPI An increase in the price of a German-made television that is popular among U.S. consumers. A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. but not bought by U.S. consumers
Consider a simple economy that produces two goods: pencils and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Price Year (Dollars per pencil) 2016 2 2017 4 2018 2 Year 2016 2017 2018 Pencils Use the information from the preceding table to fill in the following table. From 2017 to 2018, nominal GDP Quantity (Number of pencils) 125 135 125 The inflation rate in 2018 was Nominal GDP Real GDP (Dollars) (Base year 2016, dollars) GDP Deflator Price (Dollars per envelope) 3 3 3 and real GDP Envelopes Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of envelopes) 155 O Real GDP includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is. Real GDP does not include the value of intermediate goods and services, but nominal GDP does. 210 165

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