First of all it should be understood that the prime difference between GDP deflator and CPI is right GDP GDP deflator measures all the goods and services that is produced within the domestic boundary of the country but consumer price index measures only the fix basket of goods and services that is bought by the consumers
Now in the Canadian economy the consumer price index will include all the fixed market basket of goods and services that is produced in the economy not outside economy
So it will not affect the American consumer price index
Also it will not effect the American GDP deflator because GDP deflator only includes that is produced within the economy
So the answer here is neither
8. If the price of Canadian Whisky increases, will it affect the American CPI, the American...
3 please Question 3 If the price of Italian shoes imported into the United States increases, then a. the GDP deflator will increase, but the consumer price index (CPI) will not increase. b. both the GDP deflator and the consumer price index (CPI) will increase. c. the consumer price index (CPI) will increase, but the GDP deflator will not increase d. neither the GDP deflator nor the consumer price index (CPT) will increase
Is it possible that CPI increases but GDP deflator decreases? Explain.
Use the table below on the Canadian Consumer Price Index (CPI) to answer the following questions. The base year is 2002. (1 mark each) YEAR 2014 2015 2016 2017 2018 CPI 125.2 126.6 128.4 130.4 133.4 136.0 2019 1. How much is the CPI in 2002? 2. Which year had the highest inflation rate? What was the inflation rate in that year? 3. What was the inflation rate in 2019?
3) As volatility increases the price of increases as well. A) European Call B) American Call C) European Put D) Both A & B are correct E) All of the above are correct Answer:
Suppose the price of thes e respond by bumer e The consumer price reflects this price increase accurately understates the price increase due to the so-called income bus overstates the price increase due to the so-called incomebas overstates the price increase due to the so-called substitution bias QUESTION 15 Laura bought word processing software in 2005 for 550. Laura's twin brother, Laurence, buys an upgrade of the same software in 2006 for $50. What problem in the construction of the...
♡ has a la r ing the Canadian Consumer Price of change in the price level of a fixed basket of consumer goods and hed by an urban Canadian family over a period of time. h ey were som in the Plia tobacco and alcohol the most heal e d in the CPI baskets transportation sed to call the inflation rate The most h y weighted hem in the CPI basket is theher T 2. Zimbabwe had one of the...
1). If the price of Australian-made shoes imported into the United States increase, then, at a result, Answer: the GDP deflator increases but the consumer price index does not increase. 2). Suppose that U.S. mining companies purchase German-made ore trucks at a reduced price. By itself, what effect will this purchase have on the GDP deflator and in the CPI? Answer: the CPI and the GDP deflator will be unaffected. I juxtapose these two questions together because I don’t understand...
1. If wages adjust fully to price increases in the long run, fiscal policy will a. have no affect on the price level.b. have no affect on output.c. have no affect on either output or the price level.d. affect both output and the price level.
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
If the price of white bread increases, how will it affect a consumer's demand for wheat bread? Describe both the substitution and income effect that the change in price would cause.