CPI or control price index is set up by Bureau of Labour Statistics and seen to be higher than the PCE deflator because of the following reasons. First of all since the CPI is a price index which was given shape initially by measuring fixed basket of goods and services within a period of time and is unable or stays insensitive to records outside the basket. Thus it being a fixed weight price index it won't be very successful in forecasting the increase in prices in the consumer budget. Whereas the PCE changes from one year to another showing what consumers are purchasing in a given year.
explain in words why the PCE deflator inflation estimates will be lower than estimate will be...
The key difference between the CPI and PCE is that CPI measures prices of only consumption goods while PCE included intermediate goods the CPI is released monthly while the PCE is released quarterly the CPI is a fixed basket of goods while the PCE's coverage is not fixed the CPI includes food and energy prices while the PCE does not Core PCE and Core CPI measures of inflation leave out food and energy prices focus on the most important types...
GDP Inflation Deflator Rate YEAR CPI GDP %GDP | Real GDP | %RGDP (%CPI) |(2015-100) 2012 231.2 95.43 1619 2013 234.72 97.11 16785 2014 236.27 98.94 17522 2015 237.83 100.00 18219 2016 242.7 01.09 1870 2017 247.91 103.02 19485 1. Calculate the annual inflation rate using the CPI. 2. Calculate the annual GDP growth rate using the GDP. 3. Explain how the inflation rate and the GDP growth have been moved. 4. Calculate the real GDP using GDP deflator by...
QUESTION 30 Which of the following is a reason why the GDP deflator may whow a different inflation rate than CPI A. The CPI includes government spending whereas the GDP doesn't B. The CP is more accurately measured. C. The GDP deflator is more accurately measured. D. The GDP doesn't include imports whereas the CPI does.
Total Production 1999 2000 PriceTotal Production Price Total Production Hotdogs T-Shirts Factories 1000 2000 10 2000 4000 20 100 100 26. The chart above shows total production in an economy and the prices of each good produced in 1999 and 2000. Let 1999 be the base year, and let the market basket for the CPI be I hotdog and I T-shirt. Which of the the following statements is true? a. The inflation rate calculated by using the CPI is lower...
Total Production 1999 2000 Price Hotdogs T-Shirts Factories Total Production 1000 2000 10 Price 2 4 100 Total Production 2000 4000 20 100 26. The chart above shows total production in an economy and the prices of each good produced in 1999 and 2000. Let 1999 be the base year, and let the market basket for the CPI be 1 hotdog and 1 T-shirt. Which of the the following statements is true? a. The inflation rate calculated by using the...
The inflation rate reported in the news is usually calculated from the GDP deflator rather than the consurner price index.True False
Hello can someone help me answer this plz? Part C confuses me Exercise 4: Calculate Inflation and Compare CPI vs GDP Deflator (14) Consider an economy in which pizzas and burgers are produced. In year 1, 20 million pounds of pizzas are produced and consumed, and the price of pizza is $2 per pound, while 40 million pounds of burgers are produced and consumed and the price of burger is $0.50 per pound. In year 2, 30 million pounds of...
Explain why the ionization energies of O and S are lower than those of N and P.
a- Explain in your own words (not more than 40 words) why it’s needed in some cases to design a multistage amplifier. b- As designer, which of multistage amplifier in the figure below you will choose (a or b)? Explain why in your own words. Multistage Amplifier (a) Vin Common source Common Emitter Vout Common Collector Multistage Amplifier (b) Vin Common Collector Common Emitter Vout Common Source
I need 5,6, and 7 GDP Inflation DtorGDP GDP | %GDP | Real GDP | %RGDP 160p Rate YEAR CP (%CPI) Defator 2012-1 L00 |(2015-100) 2012 231.22 95.43 16197 le19 7 2013 234.72 522/0. yor103-6789 o4.738S 17522|4.34%|17 2014| 2015 237.830.ph 201ej 236.27|О.loby. | | 98.94 100.00 18219 242.79 2-08 y.| 24791| 2.11 % 1870102 (o8y1870 101.0 201 103.02 19485 1. Calculate the annual inflation rate using the CPI 2. Calculate the annual GDP growth rate using the GDP 3. Explain...