You are trying to decide whether to use the GDP deflator or the CPI to calculate the inflation rate in an economy. You will decide to use the GDP deflator if Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a you want to make sure you include all goods and services captured in GDP you are only concerned about prices that firms face you are only concerned about prices consumers face d you want to make sure you include all transactions that take place in the economy

You are trying to decide whether to use the GDP deflator or the CPI to calculate the inflation rate in an economy. You will decide to use the GDP deflator if Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a you want to make sure you include all goods and services captured in GDP you are only concerned about prices that firms face you are only concerned about prices consumers face d you want to make sure you include all transactions that take place in the economy

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Nominal versus real GDP. a. Explain the difference between nominal and real GDP. b. Explain in detail, how to calculate real GDP, including the factors used in the calculation. Look in the notes to find this – very straight forward. You need to explain the CPI since it is used to make the conversion. c. Explain what you can do with real GDP that you can’t do with nominal GDP and explain why not.
WHich of the following is a NOMINAL variable? a.Price level b.Unemployment c.Investment d.Real GDP
The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions. 2010 2020 Total spending ($ million) 89 104.12 Local GDP ($ millions) 110 134 Population 50,000 56,275 CPI deflators (2012=1) 0.96 1.05 Calculate per capita spending in 2010 and 2020, respectively, using constant dollars. *Results round to the nearest dollar. 2010 per capita spending: 2020 per capita spending: 2. Calculate the compound annual growth rate of per capita spending from 2010 to 2020 3. Calculate spending-to-GDP ratios in 2010 and 2020, respectively. *Results round to the nearest 2 decimal places. 2010 spending-to-GDP ratio: 2020 spending-to-GDP ratio: Interpret what the two spending-to-GDP ratios tell us about City A’s spending trend. 4. Assuming City A’s population grows at a constant rate in the next decade.…
Problem List 2: GDP and CPI Problem 1. Based on each scenario definition, indicate which of the following transactions will be included, note 1, or excluded, note E in 2021 GDP column. Scenario Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in California on December 9, 2021. An elementary school student buys the chocolate bar on December 24. Eight tons of coal mined in West Virginia and used to generate power in West Virginia in 2021. Yummy, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 14, 2021. It sells the hamburger to a customer that same day. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 27, 2021. Athleticus imports the pair of sneakers into the United States on May 18, 2021. An accountant starts a client's 2021 tax return on April 14, 2022, finishing it just before midnight on April 15, 2022. A share of Disney stock sold in 2021 by a person living in…
Label each statement according to whether it describes the consumer price index (CPI) or GDP deflator. Statements may describe one, both, or neither of the terms. If both labels apply, place both in the box. If neither applies, leave the box blank. 1. Is equal to 100 for the base year 2. is based on commonly used consumer goods only 3. includes the quantity and price of a 747 aircraft produced 4. equals nominal GDP divided by real GDP, times 100 5. uses the same price for goods in the market basket and adjusts quantities to reflect changes over time 6. is subject to biases because it does not reflect changes in buying patterns 7. would include the price of imported tomates