Which of the following statements are correct?Select one or more:O a. To find GDP at constant prices we can use the CPl to deflate GDP at current pricesO b. Inflation is measured by calculating the cost of a given bundle of goods.c. The basket of goods used to calculate CPI inflation is fixed for long periodsO d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.

The GDP deflator is a measure of inflation that is a ratio of the value of goods and services of the…

Which of the following statements are correct? Select one or more: O a. To find GDP at constant prices we can use the CPI to deflate GDP at current prices O b. Inflation is measured by calculating the cost of a given bundle of goods. O c. The basket of goods used to calculate CPI inflation is fixed for long periods O d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.

Which of the following statements are correct? Select one or more: O a. To find GDP at constant prices we can use the CPI to deflate GDP at current prices O b. Inflation is measured by calculating the cost of a given bundle of goods. O c. The basket of goods used to calculate CPI inflation is fixed for long periods O d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 13P

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Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the GDP deflator to convert from nominal to real would be more appropriate than using the CPI.
Why do economists use index numbers to measure the price level rather than dollar value of goods?
Construct the price index for a fruit basket in each year using 2003 as the base year.
stion 10 n Which statement is CORRECT? O The Consumer Price Index is considered the best measure of long-term, underlying inflation. A worker who is retired is considered unemployed. Any person who can work and is of working age is considered part of the labor force. O The purchase of flour by a bakery is not counted as GDP. O Core inflation uses a price index to measure inflation by excluding stock and real estate prices in its calculation. #3 E D C A Moving to the next question prevents changes to this answer. Q $ 4 R F V % 5 T 19 tv G 6 B Y H & 7 N U * 00 8 J 4+ M 9 Tec ( K O 4 L
2. Compute inflation rates for the following cases. a. Calculate the one-period inflation rate for the US in 2022 given that the CPI in 2021 was 271.0 and the CPI in 2022 was 292.7. b. Using the CPI data table from question 1, calculate the average annual inflation rate from 1970 to 1990. (Hint- this will use the constant growth formula from Lecture 3). c. Using the CPI data table from question 1, calculate the average annual inflation rate from 2000 to 2020. (Hint- this will use the constant growth formula from Lecture 3).
Which of the following statements are correct? Select one or more: O a. To find GDP at constant prices we can use the CPI to deflate GDP at current prices b. Inflation is measured by calculating the cost of a given bundle of goods. O c. The basket of goods used to calculate CPI inflation is tixed tor long periods O d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.
Table 5-2 Price of Magazines Quantity of Magazines 180 200 200 $2.00 $2.50 $3.50 Year Price of Burgers Quantity of Burgers 2017 $4.00 100 2018 $5.00 120 2019 $6.00 150 Refer to Table 5-2. Using the GDP deflator to measure the average level of prices and using 2017 as the base year, what is the economy's inflation rate? O a. 20 percent for 2018 and 30 percent for 2019 O b. 44.7 percent for 2018 and 45.5 percent for 2019 O c.25 percent for 2018 and 28 percent for 2019 O d. 20 percent for 2018 and 12.5 percent for 2019 6489a31#
The CPI is more commonly used as a gauge of inflation than the GDP deflator is becaust the O a. GDP deflator cannot be used to gauge inflation. O b. CPI is easier to measure. O c. CPI better reflects the goods and services bought by consumers. O d. CPI includes more goods and services that the GDP deflator does. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Question Completion Status: QUESTION'S If the consumer price index was 110 in the base year and 121 in the following year, then the inflation rate was a. 10 percent. b. 1 percent. C. -9.09 percent. d. 110 percent. O a b. P. QUESTION 6 The USA imports milk. If its price increascs, it will shows up in the consumer price index and in the GDP deflator. a. in the consumer price index, but not in the GDP deflator. in the GDP deflator, but not in the consumer price index. b. C. d. in neither the consumer price index nor in the GDP deflator. O a O b O d Od QUESTION 21 Labor Data for Uruguay Year Chee 2017 2018 2019 Adult 6,000 9,000 population Number of employed Number of unemployed 9,600 4,200 3,900 4,800 600 1,800 600 The labor force participation rate of Uruguay a. increased both from 2017 to 2018 and from 2018 to 2019. ame b. increased from 2017 to 2018 but decreased from 2018 to 2019. C. decreased from 2017 to 2018 but increased from 2018 to 2019. d. decreased both from 2017 to 2018 and…
In 2019 and in 2020, consumers in Dexter purchased only books and pens. 2019 2020 The prices and quantities for 2019 and 2020 are listed in the table. Item Price Quantity Price Quantity Books $4 6. $10 10 The reference base period for Dexter's CPI is 2019, and 2019 is also the year of the Consumer Expenditure Survey. Pens $6 $4 10 What is the inflation rate in 2020? The inflation rate in 2020 is percent. O A. 148.1 Ов. 2.1 OC. 80.0 D. 48.1 Click to select your answer. MacBook Air DII DD F12 F11 F10 F9 F8 20 F6 F7 F5 F4 F3 esc F1 F2 ! @ 23 $ 7 8 2 3 4 5 1 { P E R T Y Q W %3D tab L F G H S + II
Suppose that the price of bananas rises by 30%. This will have the largest impact on which measure of inflation? O A. GDP Deflator O B. Core CPI OC.CPI O D. Chained CPI Reset Selection Question 16 of 25 In 1983, the BLS chose to exclude home prices from the CPI. Why did they do this? O A. It is difficult to get home prices in a timely fashion B. Home Prices have an asset value component that doesn't reflect cost of living C. Home sizes have changed over the years making it difficult to compare home prices over time D. Home prices are too volatile in the short run Reset Selection
When determining changes in the economy's physical output, we use... O a. nominal GDP O b. real balances O c. value added approach O d. real GDP