Question

If a Pennsylvania gun manufacturer raises the price
of rifles it sells to the U.S. Army, its price hikes will
increase
a. both the CPI and the GDP deflator.
b. neither the CPI nor the GDP deflator.
c. the CPI but not the GDP deflator.
d. the GDP deflator but not the CPI.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Utility Analysis

Indifference Curves and Budget Line

Classical economics

Keynesian economics

Externalities

Cost of production

Risk Aversion

Market Faliure

Macroeconomic models

Microeconomics

Development

Consumer demand theory

Economic Development

Aggregate Supply

Factors of Production

Perfect competition

IS-LM

Opportunity Cost

Aggregate Demand

Economic models

Measurements of elasticity

National Income

Economic Growth

CLRM

Related Economics Q&A

Find answers to questions asked by students like you.

Q: In the United States, many observers have commentedin recent years on the “political gridlock in Was...

A: There are four types of lags in the implementation of the macroeconomics policy such as fiscal and m...

Q: Explain five ways in which a firm might increase its profits by raising the wages it pays?

A: Wages refer to the fixed amount of sum paid to the workers for rendering their services in a firm or...

Q: At a price of $70 there is demand for 756 items and a supply of 350 items. At a price of $130 there ...

A: Answer: Given information: To find: Equilibrium price and quantity (Assuming linear demand and supp...

Q: Given: Budget constraint: 1600 = 160*HI + 20*GUtility function: U=HI*G where MRS = -G/HI Consider so...

A: The utility of a consumer is maximized at the point where the highest indifference curve becomes tan...

Q: The government purchases component of GDP doesnot include spending on transfer payments such asSocia...

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

Q: An economy’s gross domestic product isa. the excess of spending overincome.b. the excess of income o...

A: ANS According to the expenditure, method GDP is obtained by summing up the consumption expenditure, ...

Q: 1. The estimated demand for Canadian Processed Pork is given by Qp = 171 – 20p+ 20pB + 3pc +2Y where...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Suppose the following data represent the market demand for catfish:  Price (per unit) $20 19 18 17 1...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Assume that the LM curve for a small open economy with a floating exchange rate is givenby Y = 200r ...

A: a) To find the equilibrium level of Y in the small open economy, if M = 100

Q: Describe how rational consumers maximize utility by comparing the marginal utility-to-price ratios o...

A: Utility is defining as the level of satisfaction receives while consuming the goods and marginal uti...

Q: Explain the difference between saving andinvestment as defined by a macroeconomist. Whichof the foll...

A: Saving and investment are often used interchangeably. But the two terms are different as defined by ...

Q: “Money is a means of lowering the transaction costs of makingexchanges.” Do you agree or disagree? E...

A: Barter System: When there was no money in the economy, the transaction of goods exchanged under bart...

Q: How credit impoetant to growth and development of country?

A: How credit important to the growth and development of a country? The development of a credit system ...

Q: A glue factory and a steel mill emit smoke containing a chemical that is harmful if inhaled in large...

A: Externality is one of the prominent reasons for market failure. That is actions or decisions of one ...

Q: When the inflation rate increases, what happens to thefederal funds rate? Operationally, how does th...

A: The federal fund rate is the rate of interest charged by the depository institutions in the economy ...

Q: An industry currently has 100 firms, each of whichhas fixed cost of $16 and average variable cost as...

A: Hi thanks for the question. Since there are multiple subparts in the question, we will answer for th...

Q: How are the 10 decisions altered to build two distinct strategies in the same industry?

A:   Meaning of Strategic Decisions: The strategic decisions are taken in view of competitive condition...

Q: Why should policymakers think about incentives?

A: The incentives refer to the extra income given to the people who had worked for additional hours. In...

Q: The economy of Dream Island, which is isolated from the rest of the world, has the supply of loanabl...

A: Demand curve for the loanable fund shows the level of demand for loan at different interest rate. In...

Q: 1. It is a hot day, and Seth is thirsty. Here is the value he places on each bottle of water. Value...

A: a) Seth's demand schedule :  Price Quantity Demanded More than P7 0 P5 - P7 1 P3 - P5 2 P...

Q: Solve question number 7 only early.  Correctly explain it's.

A: Hi! thank you for the question but as per the guidelines, we answer only one question at a time kind...

Q: Why would removing a trade restriction, such as atariff, lead to more rapid economic growth?

A: Q. Why would removing a trade restriction, such as a tariff, lead to more rapid economic growth? ...

Q: “Money is a means of lowering the transaction costs of makingexchanges.” Do you agree or disagree? E...

A: In economics, money is an important economic unit that is used to carry daily transactions and for m...

Q: There is a 1-year loan of $15,000. Both parties agree on a 6% of rental price of the money on the lo...

A: Given the loan amount = $15000 Interest rate on the loan amount = 6% Inflation rate = 8%

Q: Suppose the demand for French bread rises. Explainwhat happens to producer surplus in the market for...

A: When the demand (DD) increases the DD curve shifts from DD1 to DD2, thus the price rises from P1 to ...

Q: Solve question number 9 onlys with explanation.  Not copy paste

A: The process of increasing the value of goods in different stages of production is referred to as val...

Q: Anya is awake for 100 hours per week. Using onediagram, show Anya’s budget constraints if sheearns $...

A: The indifference curves of Anya’s labor-supply curve when wage is between $12 and $16 per hour is il...

Q: Q) What are the four complementary social institutions required in economic coordination?Why are the...

A:   Meaning of Co-ordination: Co-ordination is the act of organizing, making different people or thing...

Q: Solve this early but correctly.  And choose option with explanation and not copy paste answer

A: Water produce by Jill = 6 Soda produce by Jill = 6 Water produce by Jack = 8 Soda produce by Jack = ...

Q: Is absolute advantage or comparative advantagemore important for trade? Explain your reasoningusing ...

A:   Meaning of Trade/International Trade: International trade or trade refers to the exchange of capit...

Q: Name anddescribe two markets that are part of the financialsystem in the U.S. economy

A: Bond market and stock market are two major part of the financial system in the U.S. economy.

Q: Because bagels and cream cheese are often eatentogether, they are complements.a. We observe that bot...

A: Q 2: Because bagels and cream cheese are often eaten together, they are complements.a. We observe th...

Q: Let’s put dollar amounts on the flows in the circular flow diagram of Figure a. Suppose that busines...

A: Circular flow diagram shows the interaction between economic agent (households and firms). Market is...

Q: What is inflation and what causes it?

A: Definition:  Paul Samuelson (American economist) defines as " a rise in the general level of prices"...

Q: Agenda Setting: An agenda-setting game is described as follows. The “issue space" (set of possible p...

A: Click to see the answer

Q: Using an aggregate demand and supply graph, illustrateand describe the following:a. The short-run ef...

A: Aggregate demand and aggregate supply curve represent the total liquidity of money in the market at ...

Q: Bob’s lawn-mowing service is a profit-maximizing,competitive firm. Bob mows lawns for $27 each. Hist...

A: Click to see the answer

Q: If a country has inflation critically high and volatile for the last four decades but for sustainabl...

A:   Question 1: If a country has inflation critically high and volatile for the last four decades but ...

Q: What does microeconomics deal with? How microeconomics principles affect the decision-making process...

A: Q 4. What does microeconomics deal with? How microeconomics principles affect the decision-making pr...

Q: Michelle Passmore is purchasing a $25,000automobile, which is to be paid for in 60 monthlyinstallmen...

A: The effective rate of interest is the return on a savings account or an investment, whose interest i...

Q: What is the government budget constraint? How does it help us understandthe causes of high infation?

A: The government budget constraint is a bookkeeping character connecting the monetary authorities choi...

Q: What does the multiplier mean? Under what conditions can it work in an economy? What types of multip...

A: Multiplier Effect The fiscal multiplier effect occurs when an initial injection into the economy ca...

Q: A storm destroys half the fava bean crop. Is this eventmore likely to hurt fava bean farmers if the ...

A: The degree of responsiveness of change in quantity demanded due to a change in price is referred to ...

Q: If a monopoly’s fixed costs increase, its price will_________ and its profit will _________.a. incre...

A: A monopoly is a form of imperfect competition that has a single seller and a large number of buyers....

Q: Explain why the aggregate demand curve slopes downwardand the short-run aggregate supply curve slope...

A: Why the aggregate demand curve slopes downward? The aggregate demand (AD) curve slopes downward beca...

Q: Scott loves to go to baseball​ games, especially home games of the Cincinnatti Reds. All else​ equal...

A: In order to find out the optimal seat type and parking net benefit (value or benefit – Price) have t...

Q: How does an autonomous tightening or easing ofmonetary policy by the Fed affect the aggregate demand...

A: Aggregate Demand The aggregate demand (AD) is given by the sum of consumption demand, investment ...

Q: Why isn’t trade between two countries like a game inwhich one country wins and the other loses?

A: International Trade: The term international trade refers to the process to sell and purchase of good...

Q: What items would you include to figure out theopportunity cost of a vacation to Disney World?

A: The opportunity cost refers to the giving up benefits in the process of obtaining some other benefit...

Q: Refer to Exhibit 3-2. Which of the following would result in a movement from point A on D1 to point ...

A: In given figure, as we move from the Aon D1 to B on D2, the demand curve is shifted to D2 from D1 an...