The following data are the seasonally adjusted percent changes from the preceding month for the United States. Total PPI Core PPI Select one: The aggregate price level in December 2018, as measured by the core PPI, was 2018. November 2018 -0.1 +0.2 A lower than OB. the same as OC. higher than December 2018 -0.1 0.0 it was in October

The following data are the seasonally adjusted percent changes from the preceding month for the United States. Total PPI Core PPI Select one: The aggregate price level in December 2018, as measured by the core PPI, was 2018. November 2018 -0.1 +0.2 A lower than OB. the same as OC. higher than December 2018 -0.1 0.0 it was in October

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The consumer price index: Group of answer choices uses a fixed market basket set in the base year for all subsequent years. measures changes in the prices of a market basket of some 50,000 goods and services. is adjusted annually for changes in consumer spending patterns. is also called the GDP price index.
The German economy produces a vast array of goods and services, from cars to cannabis. The fact that nominal GDP in Germany has risen faster than real GDP suggests: Multiple Choice O that the general price level in Germany has risen that the general price level in Germany has fallen. that nothing will s happen to the German price level s that the base year of the German GDP price index has been shifted.
Consider a simple economy that produces only three goods. Assume that all goods produced are consumed in same period (no inventories). Following table provides information on price and quantity produced and consumed of each of three goods: 2021 2021 2022 2022 Price Quantity Price Quantity Good 1 25 25 40 33 Good 2 45 45 60 35 Good 3 80 50 90 45 Calculate nominal and real GDP for both years using 2021 as the base year. Then calculate inflation rate derived from the GDP deflator and real GDP growth between 2021 and 2022. Calculate Consumer Price Index (CPI) for each year using share of consumption of each product in 2021 as a weight. Then find CPI inflation rate between 2021 and 2022. Is this inflation rate different from GDP deflator inflation rate? Discuss reasons for differences, if any. True, false or uncertain? Above results show that GDP deflator is worse than CPI for measuring changes in average prices in economy. Comment
Deflation is particularly bad for an economy in recession for all of the following reasons EXCEPT a-with deflation people spend less expecting prices to be lower in the future b- the rising prices makes goods more expensive c- with deflation the value of assets declines while the value of loans does not - this lowers wealth and further depresses spending
need help with this one. Using the data in the table below related to nominal GDP and the chain-weighted price deflators for gross domestic product (e.g., price index for GDP), answer the following questions:
please solve the following question. i will be grateful.
Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote.
Everything in this question pertains to 2025. Bombardier spent $146 in US-produced intermediate goods. It used these intermediate goods to make streetcars which it sold to Toronto. It paid $315 to compensate its workers and made a loss of $21. Based on the information provided, what was Bombardier's contribution to 2025 GDP? Round to two decimal places. Do not enter the currency symbol, but enter the negative sign if appropriate. If your answer is -$1.125, enter -1.13.
Which statement best describes the Consumer Price Index? The Consumer Price Index measures inflation by pricing food and energy purchased by urban consumers. The Consumer Price Index measures inflation by pricing a comprehensive basket of goods and services purchased by urban consumers. None of the statements are correct. The Consumer Price Index measures inflation by pricing a basket of essential goods and services purchased by urban consumers. The Consumer Price Index measures inflation by pricing a basket of essential goods and services purchased by urban and rural consumers.
GDP and CPI: Tracking the Macroeconomy- End of Chapter Problem How might the current weighting of CPI lead to either an overstatement or understatement of the actual inflation rate experienced by households? The percentage shares of different types of spending change from year to year. Most households' consumption habits devitate somewhat from those of the "typical" household. The CPI uses only a handful of products to construct its market basket, whereas most households consume a wide variety of products. The base period used to construct the CPI is 1982-84, whereas consumption patterns have changed since then.
11. In an AD/AS model: (A) the GDP deflator always slopes upwards. (B) the potential GDP always slopes downwards. (C) the CPI is shown on the vertical axis. (D) real GDP is shown on the horizontal axis.
If nominal GDP rises: real GDP must fall. real GDP must also rise. real GDP may either rise or fall. we can be certain that the price level has risen.