ZuoTi.Pro
Question

Economists evaluate changes in the price level in order to estimate: O real GDP Othe inflation rate. Othe labor force participation rate. nominal GDP the unemployment rate.To determine how much should be paid to employees for cost-of-living adjustments, the better measure of inflation is the: Consumer Price Index, because it is measured monthly. Producer Price Index, because it is measured quarterly Consumer Price Index, because employees spend their wages on goods and services. Producer Price Index, because employees spend their wages on goods and services.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

(A) Option (2)

Inflation rate is measured by the Change in price level between two periods.

(B) Option (3)

Since employees spend their wages for consuming goods and services, CPI is the best measure.

0 0
Add a comment
Know the answer?
Add Answer to:
Economists evaluate changes in the price level in order to estimate: O real GDP Othe inflation...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 17. The consumer price index is used to convert nominal GDP into real GDP. turn dollar...

    17. The consumer price index is used to convert nominal GDP into real GDP. turn dollar figures into meaningful measures of purchasing power. characterize the types of goods and services that consumers purchase. measure the quantity of goods and services that the economy produces. a b. C d. Por M 18. When the consumer price index falls, the typical family has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the...

  • According to the textbook, which of the following statements is (are) correct? (x) If real GDP...

    According to the textbook, which of the following statements is (are) correct? (x) If real GDP is higher in one country than in another, it is not necessarily true that the standard of living is higher in the country with the higher real GDP. (y) Real GDP per person is not a perfect measure of the well-being of individuals in society because it excludes things like leisure time, the value of goods produced at home, and environmental quality. (z) Poor...

  • Which of the three measures of inflation measures the average price level of the largest number 19. of goods? a. The CP b. The GDP Deflator c. The Producer Price Index d. The Wholesale Price Inde...

    Which of the three measures of inflation measures the average price level of the largest number 19. of goods? a. The CP b. The GDP Deflator c. The Producer Price Index d. The Wholesale Price Index 20. Which of the following is NOT a reason why people save a. To smooth consumption over their lives b. To finance their future retirement c. As a way to transfer income from good times to bad d. To increase investment 21. If the...

  • ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price...

    ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI: uses current year quantities of goods and services b. a. includes separate market baskets of goods and services for both base and current years. includes only goods and services bought by typical urban consumers. d. C. is bias free. 10. Suppose a market basket of goods and services costs $1,000 in the base year and the consumer price index...

  • discussion:2 Effects of Unemployment and Inflation This Discussion focuses on how to measure the cost of...

    discussion:2 Effects of Unemployment and Inflation This Discussion focuses on how to measure the cost of living and rate of unemployment in the economy. Specific discussion areas include the various forms of unemployment and how they are measured, debates on measuring unemployment rate, and the imperfections of official unemployment rate. Moreover, consumer price index (CPI), rate of inflation, and their impacts on the cost of living. Read Chapter 8, and remember to include references and links to the websites that...

  • 1. If real GDP equals nominal GDP, then: A. the growth in output was greater than...

    1. If real GDP equals nominal GDP, then: A. the growth in output was greater than the growth in the price level. B. there was no inflation. C. the current year is the base year. D. output did not grow. E. the growth in output was equal to the growth in the price level. 2. Nominal GDP is GDP measured in: A.base prices. B.fixed prices. C. current prices. D. marginal prices. E. average prices. 3. When you include discouraged workers...

  • QUESTION 1 According to the classical economists, those who are not working have chosen not to...

    QUESTION 1 According to the classical economists, those who are not working have chosen not to work at the market wage. are unable to find a job at the current wage rate. have given up looking for a job but would accept a job at the current wage if one were offered to them. are too productive to be hired at the current wage. QUESTION 2 Which of the following explains why the long-run Phillips curve is drawn as a...

  • Alternative price indexes Because there isn't one single measure of inflation

    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 GDP deflator for this year is calculated by dividing the  _______ using _______  by the _______ using and multiplying by 100. However, the CPI reflects only the prices of all...

  • 1. The index used to measure inflation is the a. consumer price index. b....

     1. The index used to measure inflation is the a consumer price index. b. producer price index. c. wholesale price index. d. GDP deflator. 2. The price index in year 2 is 110 and the price index in year 3 is 115. The rate of inflation between years 2 and 3 is a. 1.04%. b. 2.04%. c. 4.17%. d. 4.55% 3. The situation that occurs when the inflation rate falls is called a. deflation b. disinflation c. stagflation d. inflation 4. The situation that occurs when the price level falls is called a. deflation b. disinflation c. stagflation d. inflation 5. The situation that occurs when...

  • According to classical economics: both real GDP and price level are determined by aggregate supply. both...

    According to classical economics: both real GDP and price level are determined by aggregate supply. both real GDP and price level are determined by aggregate demand. real GDP is determined by aggregate demand, while the equilibrium price level is determined by aggregate supply. real GDP is determined by aggregate supply, while the equilibrium price level is determined by aggregate demand. price level cannot be changed as prices and wages are perfectly rigid. All members of the Federal Board of Governors...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT