Equivalent ofConsumer Price Index.

Question

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Answer 1

Question

Chapter 24, Problem 1CQQ

To determine

Equivalent ofConsumer Price Index.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘c’ is the correct answer.

Explanation of Solution

Option (c)

CPI and GDP deflator both measures the overall level of prices in the economy. Thus, option ‘c’ is correct.

Option (a)

Nominal GDP measures the value of the economic output at current market prices. So option ‘a’ is incorrect.

Option (b)

Real GDP measures the value of the economic output adjusted for price changes. Hence option ‘b’ is incorrect.

Option (d)

Unemployment rate measures the level of unemployment in the economy. So, option‘d’ is incorrect.

Economics Concept Introduction

Concept Introduction:

Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services for the present time from base year.

Inflation rate: Inflation rate refers to the rate of change in the price level.

GDP deflator: Gross Domestic Product (GDP) deflator is the measure of inflation.

Real GDP: Real GDP refers to the market value of all final goods and services produced in an economy during an accounting year, and measured in constant prices.

Nominal GDP: Nominal GDP refers to the market value of all final goods and services produced in an economy during an accounting year, measured in current prices.

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Answer 2

Question

Chapter 24, Problem 1CQQ

To determine

Equivalent ofConsumer Price Index.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘c’ is the correct answer.

Explanation of Solution

Option (c)

CPI and GDP deflator both measures the overall level of prices in the economy. Thus, option ‘c’ is correct.

Option (a)

Nominal GDP measures the value of the economic output at current market prices. So option ‘a’ is incorrect.

Option (b)

Real GDP measures the value of the economic output adjusted for price changes. Hence option ‘b’ is incorrect.

Option (d)

Unemployment rate measures the level of unemployment in the economy. So, option‘d’ is incorrect.

Economics Concept Introduction

Concept Introduction:

Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services for the present time from base year.

Inflation rate: Inflation rate refers to the rate of change in the price level.

GDP deflator: Gross Domestic Product (GDP) deflator is the measure of inflation.

Real GDP: Real GDP refers to the market value of all final goods and services produced in an economy during an accounting year, and measured in constant prices.

Nominal GDP: Nominal GDP refers to the market value of all final goods and services produced in an economy during an accounting year, measured in current prices.

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Answer 3

Question

Chapter 24, Problem 1CQQ

To determine

Equivalent ofConsumer Price Index.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘c’ is the correct answer.

Explanation of Solution

Option (c)

CPI and GDP deflator both measures the overall level of prices in the economy. Thus, option ‘c’ is correct.

Option (a)

Nominal GDP measures the value of the economic output at current market prices. So option ‘a’ is incorrect.

Option (b)

Real GDP measures the value of the economic output adjusted for price changes. Hence option ‘b’ is incorrect.

Option (d)

Unemployment rate measures the level of unemployment in the economy. So, option‘d’ is incorrect.

Economics Concept Introduction

Concept Introduction:

Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services for the present time from base year.

Inflation rate: Inflation rate refers to the rate of change in the price level.

GDP deflator: Gross Domestic Product (GDP) deflator is the measure of inflation.

Real GDP: Real GDP refers to the market value of all final goods and services produced in an economy during an accounting year, and measured in constant prices.

Nominal GDP: Nominal GDP refers to the market value of all final goods and services produced in an economy during an accounting year, measured in current prices.

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Answer 4

Question

Chapter 24, Problem 1CQQ

To determine

Equivalent ofConsumer Price Index.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘c’ is the correct answer.

Explanation of Solution

Option (c)

CPI and GDP deflator both measures the overall level of prices in the economy. Thus, option ‘c’ is correct.

Option (a)

Nominal GDP measures the value of the economic output at current market prices. So option ‘a’ is incorrect.

Option (b)

Real GDP measures the value of the economic output adjusted for price changes. Hence option ‘b’ is incorrect.

Option (d)

Unemployment rate measures the level of unemployment in the economy. So, option‘d’ is incorrect.

Economics Concept Introduction

Concept Introduction:

Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services for the present time from base year.

Inflation rate: Inflation rate refers to the rate of change in the price level.

GDP deflator: Gross Domestic Product (GDP) deflator is the measure of inflation.

Real GDP: Real GDP refers to the market value of all final goods and services produced in an economy during an accounting year, and measured in constant prices.

Nominal GDP: Nominal GDP refers to the market value of all final goods and services produced in an economy during an accounting year, measured in current prices.

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Answer 5

Chapter 24, Problem 1CQQ

To determine

Equivalent ofConsumer Price Index.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘c’ is the correct answer.

Explanation of Solution

Option (c)

CPI and GDP deflator both measures the overall level of prices in the economy. Thus, option ‘c’ is correct.

Option (a)

Nominal GDP measures the value of the economic output at current market prices. So option ‘a’ is incorrect.

Option (b)

Real GDP measures the value of the economic output adjusted for price changes. Hence option ‘b’ is incorrect.

Option (d)

Unemployment rate measures the level of unemployment in the economy. So, option‘d’ is incorrect.

Economics Concept Introduction

Concept Introduction:

Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services for the present time from base year.

Inflation rate: Inflation rate refers to the rate of change in the price level.

GDP deflator: Gross Domestic Product (GDP) deflator is the measure of inflation.

Real GDP: Real GDP refers to the market value of all final goods and services produced in an economy during an accounting year, and measured in constant prices.

Nominal GDP: Nominal GDP refers to the market value of all final goods and services produced in an economy during an accounting year, measured in current prices.

Answer 6

Chapter 24, Problem 1CQQ

To determine

Equivalent ofConsumer Price Index.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘c’ is the correct answer.

Explanation of Solution

Option (c)

CPI and GDP deflator both measures the overall level of prices in the economy. Thus, option ‘c’ is correct.

Option (a)

Nominal GDP measures the value of the economic output at current market prices. So option ‘a’ is incorrect.

Option (b)

Real GDP measures the value of the economic output adjusted for price changes. Hence option ‘b’ is incorrect.

Option (d)

Unemployment rate measures the level of unemployment in the economy. So, option‘d’ is incorrect.

Economics Concept Introduction

Concept Introduction:

Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services for the present time from base year.

Inflation rate: Inflation rate refers to the rate of change in the price level.

GDP deflator: Gross Domestic Product (GDP) deflator is the measure of inflation.

Real GDP: Real GDP refers to the market value of all final goods and services produced in an economy during an accounting year, and measured in constant prices.

Nominal GDP: Nominal GDP refers to the market value of all final goods and services produced in an economy during an accounting year, measured in current prices.

Answer 7

Chapter 24, Problem 1CQQ

To determine

Equivalent ofConsumer Price Index.

Answer 8

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘c’ is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Option (c)

CPI and GDP deflator both measures the overall level of prices in the economy. Thus, option ‘c’ is correct.

Option (a)

Nominal GDP measures the value of the economic output at current market prices. So option ‘a’ is incorrect.

Option (b)

Real GDP measures the value of the economic output adjusted for price changes. Hence option ‘b’ is incorrect.

Option (d)

Unemployment rate measures the level of unemployment in the economy. So, option‘d’ is incorrect.

Answer 12

Economics Concept Introduction

Concept Introduction:

Consumer Price index (CPI): It is a measure that examines the changes in price levels of a basket of consumer goods and services for the present time from base year.

Inflation rate: Inflation rate refers to the rate of change in the price level.

GDP deflator: Gross Domestic Product (GDP) deflator is the measure of inflation.

Real GDP: Real GDP refers to the market value of all final goods and services produced in an economy during an accounting year, and measured in constant prices.

Nominal GDP: Nominal GDP refers to the market value of all final goods and services produced in an economy during an accounting year, measured in current prices.

Answer 13

Ch. 24.1 - Prob. 1QQ Ch. 24.2 - Prob. 2QQ Ch. 24 - Prob. 1CQQ Ch. 24 - Prob. 2CQQ Ch. 24 - Prob. 3CQQ Ch. 24 - Prob. 4CQQ Ch. 24 - Prob. 5CQQ Ch. 24 - Prob. 6CQQ Ch. 24 - Prob. 1QR Ch. 24 - Prob. 2QR

Equivalent ofConsumer Price Index.

Solution Summary: The author explains that CPI and GDP deflator both measure the overall level of prices in the economy.

Equivalent ofConsumer Price Index.

Answer to Problem 1CQQ

Explanation of Solution

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Chapter 24 Solutions