Explain the differences between the Consumer Price Index (CPI) and the GDP deflator

Q: Calculate Nominal GDP if  Real GDP is 2700, GDP Deflator is 70 and the price of nutmeg is $10 and…

A: Real GDP can be calculated by using the following formula.

Q: The table below shows the GDP deflator and the CPI over the past five years. By what percentage did…

A: To ascertain a percentage change, first work out the distinction (increment/decrement) between the…

Q: What does the Consumer Price Index (CPI) measure? Be specific about what the categories of goods and…

A: Macroeconomics is an important aspect for a country. Aggregate demand and aggregate supply are…

Q: Define GDP

A: GDP or Gross Domestic Product is an indicator of growth.

Q: Which of the following does NOT add to U.S. GDP? a. Air France buys a plane from Boeing, the U.S.…

A: GDP: Gross domestic Production or GDP is the final value of all the goods and services that are…

Q: The difference between the formulae used in the computations of CPI and GDP deflator is a) The CPI…

A: There are so many economic indicators to measure price index. The two important economic indicators…

Q: Which of the following does NOT add to U.S. GDP?a. Boeing manufactures and sells a plane to…

A: The Gross Domestic Product (GDP) is the summation of the final value of all the final goods and…

Q: Suppose that the prices of capital goods (goods purchased by firms as investment) rose. How would…

A: In an economy, capital goods at ethe goods that are produced and consumed for the long-run.

Q: Three of the main products produced in Grossmania's manufacturing sector are leather, laces and…

A: To calculate the Nominal GDP, we multiply price and quantity for each good and then add them…

Q: Explain three shortcomings of using GDP to measure the size of the economy.

A: GDP: It is used to measure economic well-being.

Q: Hence calculate to one decimal place the percentage change in the GDP deflator between period 1 and…

A: GDP Deflator is the ratio of nominal GDP to real GDP. GDP deflator of a base year is always 100.

Q: Describe three problems that make the consumer price index an imperfect measure of the cost of…

A: It is a measure which takes into account the price level of goods in the market and hence is used in…

Q: Assume the following economy produces only hat and that the base year is year 2. Use the table below…

A: Gross Domestic Product id the total amount of goods and services produced and sold in an economy…

Q: Question 2 Using the below table for an economy, please calculate a) Nominal income. b) Real income…

A: Hi! Thank you for the question but as per the guidelines, we answer only 3 sub-parts at one time.…

Q: The following table gives nominal GDP and the price index for two years. Find real GDP in each year,…

A: Here, the given table provides information about nominal GDP and price index  for 2010 and 2011.

Q: 1. Compute Nominal GDP for each year. 2. Compute Real GDP for each year. 3. Compute the GDP Deflator…

A: Here we calculate the nominal , real GDP and the GDP deflator by using the given information so the…

Q: Which of the following are counted in this year’s GDP? Explain your answer in each case. A.  Flashy…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: In an economy:- Nominal GDP = 17,000  Real GDP = 11,000 We have to calculate the value of GDP…

A: The given information is as follows:- Nominal GDP = $17,000 Real GDP = $11,000 We need to find the…

Q: Find Nominal GDP if GDP deflator is 136 and real GDP is $16,000

A: The data presented in the question above is:- GDP deflator = 136 Real GDP = $16,000 Nominal GDP is…

Q: If the nominal gross domestic product (GDP) for a year is $5.4 trillion, and the real gross domestic…

A: The GDP deflator is a macroeconomic indicator or measure of inflation that measures inflation by…

Q: True or false? The GDP deflator measures prices of a group of products called the "market basket"…

A: The Consumer Price Index measures the overall change in consumer prices over time based on a…

Q: GDP

A: All the goods and services’ values produced within a duration and inside the country’s boundary…

Q: Which of the following methods of calculating GDP would NOT be accurate when the information on the…

A: Gross domestic product (GDP) measures the market value of final goods and services produced by an…

Q: Identify whether the following items are officially included in United States GDP or GNP. a. The…

A: GNP  = GDP + net property income from abroad.

Q: Discuss why alternatives to GDP are increasingly used to measure the standard of living

A: In an economy, it can be seen that the GDP is less likely used by the policymakers to measure the…

Q: What is the diference between CPI and GDP deflator tracking? CPI tracks price changes in all…

A: Inflation is measured by the CPI.

Q: An increase in the price of Dell computers manufactured in Austin Texas and purchased by Americans…

A: GDP deflator is ratio of nominal GDP to real GDP, and CPI is the change in cost of a fixed basket of…

Q: The factor payments measure of GDP

A: GDP can be measured using the expenditure approach: Y = C + I + G + (X – M).

Q: Calculate REAL GDP if Nominal GDP is 3600, GDP Deflator is 100 and the price of nutmeg is $12 and…

A: Meaning of Real GDP: The term Real GDP refers to as gross domestic product at a stable price of…

Q: According to the Bureau of Economic Analysis, the GDP Deflator for the 3rd Quarter 2021 is +5.7%.…

A: GDP deflator takes into account the impact of inflation on the GDP of the economy during a given…

Q: Explain what is the difference between CPI and GDP deflator?

A: 2. Both CPI and GDP deflator is use to measure the inflation rate. Following are the difference…

Q: Calculate nominal GDP and Real GDP from following when 2016 base year Year Price of Bat Bat Balls…

A: Nominal GDP: - it is the value of all final goods and services produced in any country in a given…

Q: The nominal GDP for an economy is $12 trillion. Real GDP is $10 trillion. What is the value of the…

A: Implicit price deflator is average price of all the finished goods and services within the country…

Q: two (2) differences between the consumer price index and the GDP deflator

A: CPI is Consumer Price Index.  GDP Deflator is Gross Domestic Product Deflator.

Q: What is GDP? Which are the main components? What is the difference between nominal and real GDP?…

A:

Q: compute the percentage change in the overall price level. Also use 2017 as the base year

A: GDP deflator measures an increase in value of goods and services over the years.

Q: Explain the difference between GDP and GNP with an example.

A: GDP includes the values of only final goods thus it excludes the value of intermediate goods.

Q: Which of the following transactions are or are not included in GDP? 1. The pollution created when…

A: 1)Not included in GDP Because externalities does not account for GDP. 2)Not included in GDP Because…

Q: Explain the difference between GDP and GNP. If the residents of Oman generate as much production in…

A: GDP (gross domestic product) of a country is the market value of all final commodities and services…

Q: Label each statement according to whether it describes the consumer price index (CPI) or GDP…

A: Consumer price index CPI is the measurement of GDP of a nation. It includes the weighted average…

Q: Explain the difference between GDP and GNI.

A: Gross Domestic Production is the total monetary of all the finished goods and services which are…

Q: Prices for which of the following are included in the GDP deflator, but not included in the Consumer…

A: The GDP deflator considers the price of currently produced goods and services to the price of the…

Q: Calculate the quarter-over-quarter percentage change in GDP for the last four quarters:

A: Quarter over quarter can be calculated by using the following formula, (GDPQ-GDPQ-1)GDPQ-1×100 GDPQ…

Q: what is the difference between nominal GDP and real GDP? what is the methodological procedure to…

A: National Income is the amount received from the goods and services produced annually in the economy.…