Equivalent of Consumer Price Index .

Question

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Answer 1

Question

Chapter 6, Problem 1QCMC

To determine

Equivalent of Consumer Price Index.

Expert Solution & Answer

Answer to Problem 1QCMC

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 6, Problem 1QCMC

To determine

Equivalent of Consumer Price Index.

Expert Solution & Answer

Answer to Problem 1QCMC

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 6, Problem 1QCMC

To determine

Equivalent of Consumer Price Index.

Expert Solution & Answer

Answer to Problem 1QCMC

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 6, Problem 1QCMC

To determine

Equivalent of Consumer Price Index.

Expert Solution & Answer

Answer to Problem 1QCMC

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 6, Problem 1QCMC

To determine

Equivalent of Consumer Price Index.

Expert Solution & Answer

Answer to Problem 1QCMC

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 6, Problem 1QCMC

To determine

Equivalent of Consumer Price Index.

Expert Solution & Answer

Answer to Problem 1QCMC

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 6, Problem 1QCMC

To determine

Equivalent of Consumer Price Index.

Answer 8

Expert Solution & Answer

Answer to Problem 1QCMC

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. 6.1 - Prob. 1QQ Ch. 6.2 - Prob. 2QQ Ch. 6 - Prob. 1QCMC Ch. 6 - Prob. 2QCMC Ch. 6 - Prob. 3QCMC Ch. 6 - Prob. 4QCMC Ch. 6 - Prob. 5QCMC Ch. 6 - Prob. 6QCMC Ch. 6 - Prob. 1QR Ch. 6 - Prob. 2QR

Equivalent of Consumer Price Index .

Equivalent of Consumer Price Index.

Answer to Problem 1QCMC

Explanation of Solution

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Chapter 6 Solutions