The following statements refer to the CPI and the GDP deflator. Which one is CORRECT?   The CPI rises when the price of intermediate goods purchased by firms increases.   The inflation rate calculated using the CPI is always higher than that obtained with the GDP deflator.   The CPI takes into account the prices of all goods and services produced in an economy.   The GDP deflator does not reflect the rise in prices on imported final goods

Q: To which of the problems in the construction of the CPI is the creation (innovation) of the mobile…

A: A measure for examining the weighted average of the prices of the basket of consumer services and…

Q: The GDP deflator measures A .the changes in aggregate prices of all final goods and services…

A: GDP deflator: - it is a measure of the change in the price of goods and services produced in an…

Q: When a nominal value increases it must be true that prices have increased. Select one: True False

A: Nominal value: face value of an asset or security.

Q: please help me with this questions, thank you

A: CPI is measured using fixed basket of goods.

Q: Year 1 Year 2 Employment (households survey) 5,100 5,200 Labor Force 6,000 6,100 Population 10,000…

A: The number of unemployed people in year 1 is given as: Number of people unemployed in year 1= Labor…

Q: The U.S CPI is a Laspayres price index (base year weights). All things equal it will Overstate…

A: The Laspayres Index is a type of pricing index. This Index is a way for calculating the CPI…

Q: 47. Your employer uses an escalator clause to determine your raise each year. In an inflationary…

A: The macroeconomic variables and aspects have their major analysis and considerations regarding the…

Q: In each of the following cases, does the increase in prices affect CPI, GDP deflator, or both in…

A: CPI (Consumer Price Index) measures the changes in the price level of a basket of consumer goods and…

Q: In computing the consumer price index (CPI), a base year is chosen. Which of the following…

A: The price index is described because the relative prices of products and services in a specific…

Q: The CPI measures: Select one: a. The overall cost of goods and services bought by a typical customer…

A: CPI measures the cost of a fixed basket of goods and services purchased by a typical household,…

Q: The amount of U.S. currency in circulation in 2014 was approximately $1,200 billion. The inflation…

A: There is a seigniorage if a $10 bill or a quarter coin has a face value of $1 yet costs $1 to…

Q: A one-pound bag of cookies cost 30 cents in 1922. If the CPI in 1922 was 17 and the CPI in 2014 is…

A: Price of cookies in 2014 = Price in 1922 x (CPI in 2014 / CPI in 1922) = $0.30 x (230 / 17) = $4.06

Q: You are now required to compute the consumer price index (CPI) and the inflation in one village.…

A: "Consumer price index represented as CPI depicts the overall deviation in prices over time with…

Q: onsumer price index (CPI) a measure of the overall cost of the goods and services bought by a rich…

A: Consumer price index is used to calculate the inflation rate in the economy. It shows the cost of a…

Q: One form of the CPI that has been advocated by lobbying groups is a “CPI for the elderly.” The…

A: The CPI calculates the weighted average of a basket of consumer products and services. In the…

Q: In 1990 the Consumer Price Index (CPI) was 150.  Today, the Consumer Price Index (CPI) is 250.…

A: Given Information: Current CPI = 250 Past CPI = 150      Inflation Rate = Current CPI – Past CPIPast…

Q: The term ______________ means unadjusted, gross, or current. The term __________ is used to refer to…

A: The term Nominal means unadjusted, gross, or current. The term real is used to refer to any…

Q: as an argument when consumer price index (CPI) is higher than GDP deflator? Prices of exported goods…

A: The Consumer Price Index estimates the general change in consumer prices over the long haul in light…

Q: You are provided the following data regarding an imaginary country. 2019 2020 Commodities Price…

A: Given, Commodities 2019 2020 Price Quantity Price Quantity A 3 30 5 25…

Q: Question   a.Calculate GDP Deflator for all three years. b.Calculate Inflation rate in year 2 and…

A: GDP is the market value of all goods and services produced in an economy. GDP Deflator is a measure…

Q: Assume the number of employed people in Pakistan is 22.5 million in 2020. The number of unemployed…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Describe a situation, either a government policy situation, an economic problem, or a private sector…

A: CPI would be more appropriate in situation which involves a typical consumer. Let's take the…

Q: The consumer price index (CPI) has increased from 80 to 88. Calculate the inflation rate

A: The Inflation rate is that the life of the rise or rate of increase within the general worth of…

Q: A number of statistics are computed to measure the price level, such as the GDP deflator and the…

A: CPI (Consumer Price Index) measures the change in the price of basket of consumer goods and…

Q: Describe the following term: "Unemployment".  Is it: Inflation Price Level National Income none of…

A: Unemployment is defined as when an individual who is willing to work but he is unable to find any…

Q: One criticism of the CPI is that the market basket used in the CPI may not reflect current spending…

A: The consumer price index (CPI) measures the change in price paid for a market basket of consumer…

Q: Because there isn't one single measure of inflation, the government and researchers use a variety of…

A: GDP deflator for the year is calculated by dividing the value of all the goods and services produced…

Q: The government has released the latest retail price index which suggests inflation was 2.14%. A…

A: Given: Annual rate of inflation = 2.14% Present cost of a basket of food = £45.44

Q: "The cost of an average ticket to a baseball game in 1955 was $2.19. In 2010, the average price of a…

A: 1) 218.056 CPI for 2010 means the average cost of consumer goods was 218.06% of the base price in…

Q: The world price of oil has risen recently. For Australia (which is a net exporter of oil), this…

A: CPI would increase,because consumers in Australia would buy more oil.

Q: Ek 3 UK’s inflation has hit a 40 year high (CPI is 9.1% in June 2022). Evaluate the use of interest…

A: A widespread increase in the prices of goods and services in an economy indicates inflation, which…

Q: Which of the following statements is correct? a. The CPI can be used to compare dollar figures…

A: The CPI is an effective tool and is used in the procedure of how it could help compare it with the…

Q: If the Consumers Price Index in March 2016 was 1,125 and it was 1,154 in March 2017, this indicates…

A: Inflation rate is calculated by the percentage change in CPI.

Q: One difference between the CPI and the GDP deflator is CPI uses a fixed basket, Deflator…

A: An economic indicator refers to a piece of economic data, often on a macroeconomic scale, that…

Q: , and its inflation premium is at 2.60%. What is its CPI for the last period (CPI,t

A: CPI is measured using fixed basket of goods.

Q: he world price of oil has risen recently. For Australia (which is a net exporter of oil), this…

A: CPI and GDP deflator are both indices that measure price levels.

Q: The CPI might overstate inflation because consumers may shift consumption to cheaper alternatives.…

A: Consumer price index measures the overall price of market basket of goods and services that is…

Q: Assume the number of employed people in Pakistan is 22.5 million in 2020. The number of unemployed…

A: Dear student,Thank you for giving me a chance to serve you. You have asked three questions in a…

Q: Assume the consumer price index (CPI) in 2018 was 95, in 2019 the CPI was 100, and in 2020 the CPI…

A: Correct: c. 5%

Q: To which of the problems in the construction of the CPI is the invention of pocket-sized computers…

A: CPI measures the change in the price of a fixed basket purchased by an average consumer in the…

Q: A nominal value can increase when either prices or quantities or both increase. Select one: True…

A: A nominal value is an unadjusted value whereas the real value is an adjusted value.

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…