Homework Answers
B. GDP deflator
Because GDP deflator takes into account value of all final goods and services produced in the country, it is considered the best indicator of inflation.
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as the best overall indicator of inflationary pressures in the economy Most economists consider the Select...
22. Use your knowledge of price indexes to answer the following three-part question 22a. An index...
22. Use your knowledge of price indexes to answer the following three-part question 22a. An index of prices of all domestically produced goods in the economy is the a. Consumer Price Index. b. GDP Chain Price Index. c. Producer Price Index. d. Wholesale Price Index. 22b. The most comprehensive (inclusive of goods) measure of the rate at which prices are changing is: a. the CPI b. the balance-of-payments index. c. the GDP Chain Price Index....
The broadest-based price index available is the A) GDP deflator. B) producer price index. C) consumer...
The broadest-based price index available is the A) GDP deflator. B) producer price index. C) consumer price index. D) wholesale price index.
Consider an economy with an inflationary gap. The advantage of using a contractionary fiscal policy rather...
Consider an economy with an inflationary gap. The advantage of using a contractionary fiscal policy rather than allowing the economy's natural adjustment mechanism to operate is that O A private sector expenditures increase on their own, the policy will stabilize real GDP. OB. It will shorten what might otherwise be a long recession OC. will reduce the inflationary pressure on prices that would otherwise ocur. OD. It wil dose the output gap. Click to select your answer MacBook Air Assume...
prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer...
prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPD and the GDP deflator using 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 GDP Deflator CPI althout saying
Question 10 (5 points) Which price index comprises the prices of all final goods and services...
Question 10 (5 points) Which price index comprises the prices of all final goods and services produced within the economy? a) the consumer price index Ob) the GDP inflator O C) the GDP deflator d) the producer price index Question 11 (5 points) ✓ Saved What do we call an increase in the average level of prices in an economy?
1. Consider the following table for an economy that produces only six goods 2016 2018 Goods...
1. Consider the following table for an economy that produces only six goods 2016 2018 Goods PricelQuantity Price Quantity Pizza$410 S8 12 Shoe 12 20 36 15 T-Shirts 6 10 15 Bread2 Water1 Cola4 10 10 Assuming that 2016 is the base year, find the following; (Please show all calculations) (a) The values for nominal GDP for 2016 and 20118 (b) The values for real GDP for 2016 and 2018 (c) The GDP deflator for 2016 and 2018 (d) The...
Question 12 0.25 pts 12. Changes in the producer price index tend to ___changes in actual...
Question 12 0.25 pts 12. Changes in the producer price index tend to ___changes in actual producer costs. O a. overstate b. understate O c lag behind d. precede Question 13 0.25 pts 13. Trends over the last 70 years for the consumer price index (CPI), producer price index (PPI), and gross domestic product (GDP) deflator show that: a. They exhibit identical patterns. b. They have changed in similar but not identical patterns. c. The GDP deflator has shown considerably...
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
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 CPI for this year is calculated by dividing the _______ using by the _______ using and _______ multiplying by 100. However, the GDP deflator reflects only the prices of all...
Consider an economy that produces and consumes hot dogs and hamburgers
LounchPod • Consider an economy that produces and consumes hot dogs and hamburgers. In the following table are data for two different years. a. Using 2010 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the implicit price deflator for GDP, and a fixed-weight price index such as the CPI. b. By what percentage did prices rise between 2010 and 2015? Give the answer for each good and also for the two measures of the overall...
Most economists believe that discretionary fiscal policy should be used sparingly because of the risk of:...
Most economists believe that discretionary fiscal policy should be used sparingly because of the risk of: Select one: O a. sacrificing equity for efficiency. O b. budget surpluses. O c. lags in adjusting policy, so that policies designed to fight a recession may end up intensifying an inflationary gap. O d. budget deficits. Monetarism suggests that: Select one: 0 a. monetary policy should be used to offset economic fluctuations. O b. discretionary monetary policy does more harm than good. O...
The broadest-based price index available is the A) GDP deflator. B) producer price index. C) consumer price index. D) wholesale price index.
Consider an economy with an inflationary gap. The advantage of using a contractionary fiscal policy rather than allowing the economy's natural adjustment mechanism to operate is that O A private sector expenditures increase on their own, the policy will stabilize real GDP. OB. It will shorten what might otherwise be a long recession OC. will reduce the inflationary pressure on prices that would otherwise ocur. OD. It wil dose the output gap. Click to select your answer MacBook Air Assume...
prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPD and the GDP deflator using 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 GDP Deflator CPI althout saying
Question 10 (5 points) Which price index comprises the prices of all final goods and services produced within the economy? a) the consumer price index Ob) the GDP inflator O C) the GDP deflator d) the producer price index Question 11 (5 points) ✓ Saved What do we call an increase in the average level of prices in an economy?
1. Consider the following table for an economy that produces only six goods 2016 2018 Goods PricelQuantity Price Quantity Pizza$410 S8 12 Shoe 12 20 36 15 T-Shirts 6 10 15 Bread2 Water1 Cola4 10 10 Assuming that 2016 is the base year, find the following; (Please show all calculations) (a) The values for nominal GDP for 2016 and 20118 (b) The values for real GDP for 2016 and 2018 (c) The GDP deflator for 2016 and 2018 (d) The...
Question 12 0.25 pts 12. Changes in the producer price index tend to ___changes in actual producer costs. O a. overstate b. understate O c lag behind d. precede Question 13 0.25 pts 13. Trends over the last 70 years for the consumer price index (CPI), producer price index (PPI), and gross domestic product (GDP) deflator show that: a. They exhibit identical patterns. b. They have changed in similar but not identical patterns. c. The GDP deflator has shown considerably...
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 CPI for this year is calculated by dividing the _______ using by the _______ using and _______ multiplying by 100. However, the GDP deflator reflects only the prices of all...
Most economists believe that discretionary fiscal policy should be used sparingly because of the risk of: Select one: O a. sacrificing equity for efficiency. O b. budget surpluses. O c. lags in adjusting policy, so that policies designed to fight a recession may end up intensifying an inflationary gap. O d. budget deficits. Monetarism suggests that: Select one: 0 a. monetary policy should be used to offset economic fluctuations. O b. discretionary monetary policy does more harm than good. O...
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