Suppose that, as a result of an increase in the price of wheat, several large U.S. grocery chains, such as Harris Teeter andFood Lion, increase the prices of all of their bread products. It follows that, ceteris paribus, the increase in the price willincrease:O a.both the CPI and the GDP deflator.O b. neither the CPI nor the GDP deflator.O c. the GDP deflator but not the CPI.O d. the CPI but not the GDP deflator.Next page

In an economy, the basic difference between CPI and GDP deflator is that the CPI only record price…

Answered: Suppose that, as a result of an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Economists find in a business cycle, a peak represents the end of, and a trough represents the end of Select one: a. an expansion; a recession O b. a depression; an expansion O c. a recession; an expansion O d. a trough; a peak
Which of the following statements are correct? Select one or more: O a. To find GDP at constant prices we can use the CPl to deflate GDP at current prices O b. Inflation is measured by calculating the cost of a given bundle of goods. c. The basket of goods used to calculate CPI inflation is fixed for long periods O d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.
Suppose that the economy is presently operating at full employment. If there is an increase in national income, which of the following will occur automatically? O A. An increase in tax rates. O B. An increase in unemployment compensation spending. O C. An increase in tax revenues. O D. A decrease in tax rates.
9
Please awnser following question please bear in mind that there can be more than one right awnser.
LO 5 The table below lists the CPI and wage values for the United States from different decades. a. Complete the table by computing the real income for each year shown in the table. Instructions: Round your answers to two decimal places. Nominal and Real Income Year 1967 1977 1997 2007 2013 Average Nominal Mage (dollars) $7,877 13,579 26,055 37.177 CPI 3.4 60.6 113.6 160.5 207.1 233.0 Average Beal Mage (dollars) 3 52,322 Instructions: Enter the year using all four numbers tyy b. Of the years listed above, the paycheck of the average worker was highest in c Of the years listed above, the purchasing power of the average worker was highest in
What likely occurred during 2018 if nominal GDP did not change and real GDP decreased, relative to the year 2017? Select one: O a. Total production of goods and services in the economy did not change in 2018. cross out O b. The economy experienced deflation during 2018. cross out cross out O c. The price level did not change during 2018. O d. Total production of goods and services in the economy increased during 2018. cross out cross out O e. The economy experienced inflation during 2018
4) Changes in the consumer price index are useful in predicting changes in the producer price index. Select one: O a. False O b. True
If the cost of health and personal care increases by 20 percet, then, other things the same, how much is the CPI likely to increase? 11 Select one: O a. by about 1 percent O b. by about 2 percent O c. by about 4 percent O d. by about 3 percent

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