3. Shipments of product from manufacturer to the retailer are tracked by the U.S. Census Bureau. The value of shipments for computer and electronic products in September 2009, 2010 and 2011 are shown in the table below, along with the CPI and PPI for each of these months. Manufacturer Shipments ($ billion) CPI PPI 2009 2010 29.1 33.3 216.0 218.4 173.4 180.2 2011 32.9 226.3 192.5 a) Use the CPI to deflate the value of the shipped computer and electronics products. b) Use the PPI to deflate the value of the shipped computer and electronics products. c) Which index, the CPI or PPI, do you feel is more appropriate for deflating these shipment values? Why?

3. Shipments of product from manufacturer to the retailer are tracked by the U.S. Census Bureau. The value of shipments for computer and electronic products in September 2009, 2010 and 2011 are shown in the table below, along with the CPI and PPI for each of these months. Manufacturer Shipments ($ billion) CPI PPI 2009 2010 29.1 33.3 216.0 218.4 173.4 180.2 2011 32.9 226.3 192.5 a) Use the CPI to deflate the value of the shipped computer and electronics products. b) Use the PPI to deflate the value of the shipped computer and electronics products. c) Which index, the CPI or PPI, do you feel is more appropriate for deflating these shipment values? Why?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Measuring The Cost Of Living

Section: Chapter Questions

Problem 3CQQ

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