Question

A) currency. B) demand deposits. 6) traveler's checks. D) money market accounts. 9. If the price of imported Shiba inu dogs increased then which of the following would increase: I. GDP deflator II. PCE deflator III. CPI (assume dogs are in the basket) Al I only Ill only I and III D) II and III inflation. is calculated and will tend to show 10. P= 141 is similar to how the_ Poli AI GDP deflator; higher (B) CPI; higher C) GDP deflator; lower D) CPI; lower Part 11 11. Consider two competitive economies named PRC and USA that have the same productio F(K,L) = K1/2 L1/2. The economies have the same amount of capital (K = 16) but different Jahor L = 199 in PRC and L = 16 in USA). Notice that by divine coincidence all these n

please answer questions 9 and 10 with explanation

Answer 1

(9)- if the price increases of imported goods then increase in PCE Deflator and CPI.

The correct option is (D).

Both measure the the increase in prices of good and services either domestic good or imported goods.

10)- GDP deflator= (Nominal GDP/Real GDP) =P1q1/p0q1

The correct option is (A).

GDP deflator, higher