Fill in the blanks with the number that corresponds to the correct word or phrse below: 2. GDP defator Deffation 3. Consumer price index (CP) S. Labor statistics 7. dollar 9. International price index 11. Percentage change 4. base 6. Employment cost index 8. Producer price index 10. Consumer expenditure survey 12. indices Price are created to calculate an overall average change in relative prices over time. To convert the money spent on the market basket of goods, to an index number, economists arbitrarily choose one year to be the year, or starting point from which we measure changes in prices. The year, by definition, has an index number equal to 100. The inflation rate is not derived by subtracting the index numbers, but rather through the calculation. Index numbers have no signs or other units attached to them. The most commonly cited measure of inflation in the United States is the The Bureau of is responsible for the computation of the Consumer Price Index. is a national survey of about 7,000 households, which provides detailed information on spending habits. The is based on prices paid for supplies and inputs by producers of goods and services. is based on the prices of merchandise that is exported or imported. The An measures wage inflation in the labor market. The is a price index that includes all the components of GDP. is not a good measure of cost of living as it includes prices of many products not purchased by households. If one wants the most accurate measure of inflation as it impacts households, use the , as it only picks up prices of products purchased by households. Severe negative inflation is called
Fill in the blanks with the number that corresponds to the correct word or phrse below: 2. GDP defator Deffation 3. Consumer price index (CP) S. Labor statistics 7. dollar 9. International price index 11. Percentage change 4. base 6. Employment cost index 8. Producer price index 10. Consumer expenditure survey 12. indices Price are created to calculate an overall average change in relative prices over time. To convert the money spent on the market basket of goods, to an index number, economists arbitrarily choose one year to be the year, or starting point from which we measure changes in prices. The year, by definition, has an index number equal to 100. The inflation rate is not derived by subtracting the index numbers, but rather through the calculation. Index numbers have no signs or other units attached to them. The most commonly cited measure of inflation in the United States is the The Bureau of is responsible for the computation of the Consumer Price Index. is a national survey of about 7,000 households, which provides detailed information on spending habits. The is based on prices paid for supplies and inputs by producers of goods and services. is based on the prices of merchandise that is exported or imported. The An measures wage inflation in the labor market. The is a price index that includes all the components of GDP. is not a good measure of cost of living as it includes prices of many products not purchased by households. If one wants the most accurate measure of inflation as it impacts households, use the , as it only picks up prices of products purchased by households. Severe negative inflation is called
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Fill in the blanks with the number that corresponds to the correct word or phrse below:
1. Deflation
2. GDP deflator
3. Consumer price index (CPI)
4. base
5. Labor statistics
6. Employment cost index
7. dollar
8. Producer price index
9. International price index
10. Consumer expenditure survey
11. Percentage change
12. indices
Price
are created to calculate an overall average change in relative prices over time.
To convert the money spent on the market basket of goods, to an index number, economists arbitrarily choose one year to be the
year, or starting point from
which we measure changes in prices. The
year, by definition, has an index number equal to 100.
The inflation rate is not derived by subtracting the index numbers, but rather through the
calculation.
Index numbers have no
signs or other units attached to them.
The most commonly cited measure of inflation in the United States is the
The Bureau of
is responsible for the computation of the Consumer Price Index.
is a national survey of about 7,000 households, which provides detailed information on spending habits.
The
is based on prices paid for supplies and inputs by producers of goods and services.
The
is based on the prices of merchandise that is exported or imported.
An
measures wage inflation in the labor market.
The
is a price index that includes all the components of GDP.
is not a good measure of cost of living as it includes prices of many products not purchased by households.
If one wants the most accurate measure of inflation as it impacts households, use the
, as it only picks up prices of products purchased by households.
Severe negative inflation is called
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