Prices for which of the following are included in the GDP deflator, but not included in the Consumer Price Index? Select one: a. consumption of services b. intermediate goods and services c. consumption of goods d. firms' purchases of new equipment for production

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

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

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

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Q: Distinguish between GDP deflator and Consumer Price Index

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A: Inflation is measured by the CPI.

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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.

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A:

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

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.