Please give a detailed solution with an explanation to the below images.Please double-check your answer before submitting by double-checking your sources and work.Blank Answer #1:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #2:this year's prices or the base year's pricesBlank Answer #3:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #4:this year's prices or the base year's pricesBlank Answer #5:produced domesticallybought by consumers 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 theusingby theusingand 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...GDPDeflatorScenarioCPIA decrease in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-seafishing, made in the U.S., but not bought by U.S. consumersAn increase in the price of a Chinese-made car that is popular among U.S. consumers Suppose the base year for this price index is 2017.In the last row of the table, calculate and enter the value of the CSPI for the remaining years.Between 2017 and 2018, the CSPI increased by%Between 2018 and 2019, the CSPI increased by%Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check allthat apply.O A new, safe method of memory enhancement became available for purchase.O Professors required each student to buy 10 notebooks, regardless of the price.O As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all,instead using the copies on reserve in the library.O The quality and design of calculators improved dramatically from 2017 to 2019. For example, calculators made in 2019 accept memorycards, whereas those made in 2017 do not, but this quality change is hard to measure.

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Answered: The GDP deflator for this year is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please give a detailed solution with an explanation to the below images.
Please double-check your answer before submitting by double-checking your sources and work.
Blank Answer #1:
value of all goods and services produced in the economy in the base year
cost of a given market basket of goods and services
value of all goods and services produced in the economy this year
Blank Answer #2:
this year's prices or the base year's prices
Blank Answer #3:
value of all goods and services produced in the economy in the base year
cost of a given market basket of goods and services
value of all goods and services produced in the economy this year
Blank Answer #4:
this year's prices or the base year's prices
Blank Answer #5:
produced domestically
bought by consumers

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
Deflator
Scenario
CPI
A decrease in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea
fishing, made in the U.S., but not bought by U.S. consumers
An increase in the price of a Chinese-made car that is popular among U.S. consumers

Suppose the base year for this price index is 2017.
In the last row of the table, calculate and enter the value of the CSPI for the remaining years.
Between 2017 and 2018, the CSPI increased by
%
Between 2018 and 2019, the CSPI increased by
%
Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all
that apply.
O A new, safe method of memory enhancement became available for purchase.
O Professors required each student to buy 10 notebooks, regardless of the price.
O As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all,
instead using the copies on reserve in the library.
O The quality and design of calculators improved dramatically from 2017 to 2019. For example, calculators made in 2019 accept memory
cards, whereas those made in 2017 do not, but this quality change is hard to measure.

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