Which of the following statements is true?a. Deflation is an increase in the general level ofprices.b. The consumer price index (CPI) measureschanges in the average prices of consumergoods and services.c. Disinflation is an increase in the rate ofinflation.d. Real income is the actual number of dollarsreceived over a period of time.

Q: Which of the following give the nominal value of a variable? Check all that apply. Maria's wage is…

A: The main distinction b/w the nominal variables and real variables is that the former is defined in…

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A: 1.

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Q: Describe 10 principles of economics. Explain what questions economics addresses, as well as the…

A: NOTE: We'll answer just the first part as the second part will require more time. Please resubmit…

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: how would an increase in the price of Starbucks coffee effect the CPI and GDP deflator?     both…

A: The consumer price index (CPI) measures the overall value of goods and services bought by consumers.…

Q: The Consumer Price Index is subject to the substitution bias and the quality/new goods bias. Are the…

A: Despite being the most accurate, commonly used measure of inflation, CPI has some limitations. It…

Q: The classical dichotomy is the separation of real and nominal variables. The following questions…

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A: Answer -

Q: Last year, Jane spent all of her income to purchase 200 units of corn at $5 per unit. This year, she…

A: Nominal income does not take prices into account. It is not adjusted for inflation. Real income is…

Q: The classical dichotomy is the separation of real and nominal variables. The following questions…

A: Nominal Variables are measured in monetary terms. Real Variables are measured in terms of goods and…

Q: Calculate the missing information in the table  Year Real GDP Nominal GDP GDP Deflator Prices of…

A: GDP deflator = (Nominal GDP / Real GDP)*100 => Real GDP = (Nominal GDP / GDP deflator)*100 =>…

Q: The consumer price index is subject to the substitution bias and the quality/new good bias. Are the…

A: Consumer price index uses the value of a basket for a consumer because it considered the market…

Q: Decide whether you would expect relationship between the following pairs of dependent and…

A: Investment: It refers to the amount of money divided by the people within their income. The…

Q: Nominal GDP was $9,817 billion in 2000 and $21,433 billion in 2019. The chain-weighted price…

A: Real GDP is the GDP calculated at base year prices. The base year is decided by the institution of…

Q: When we compare the difference between Nominal GDP and Real GDP we note A. Nominal GDP is always…

A: Real GDP is calculated on the basis of base or fixed year while current GDP is calculated on the…

Q: If the price of imported extra virgin olive oil decreases, then both the GDP deflator and the…

A: GDP Deflator includes goods that are PRODUCED within the borders of the country. Consumer price…

Q: The salary of a consumer increased from ¢90, 000 to ¢110,000, which represents his salary for 2021…

A: Given: Salary in 2021=90000 Salary in 2022=110000

Q: he following is data on income (IDR 1,000) and the Consumer Price Index (CPI) with the base year…

A: The inflation is an increase in the general price level in an economy over time. It decreases the…

Q: During 2009, the Federal Reserve was easing monetary policy in an attempt to boost the economy. That…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Identify each of the following as nominal or real variables. a. the physical output of goods and…

A: First of all , let us now the difference between real variables and nominal variables. The value of…

Q: Consider a simple economy that produces two goods: cupcakes and erasers. The following table shows…

A: The GDP at base year prices is depicted by Real GDP whereas GDP at current prices depicted by…

Q: The classical dichotomy is the separation of real and nominal variables. The following questions…

A: Since you have posted multiple sub-parts, we are answering the first two for you. If you want a…

Q: Show how much changes in real income (or Real GDP) for each following cases. % (increase, A. Nominal…

A: " Since you have posted a question with multiple sub-parts, we shall answer the first sub-parts .…

Q: (b) “Like the CPI, the GDP deflator is subject to substitution bias.” True or false? Explain. (c)…

A: Substitution bias describes a bias which is possible in economic index numbers if they do not…

Q: Please answer the questions provided on the image below.

A: We will answer the first question since the exact one wasn't specified. Please submit a new question…

Q: When nominal GDP rises, we can be certain that...   a) prices must have risen   b) both prices…

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

Q: Alyssa spends all of her money on comic books and mandarins. In 2014, she earned $27.00 per hour,…

A: Nominal value of a variable is measured in relation with money. Real value is measured in terms of…

Q: Which of the following macroeconomic variables is the most seasonally procyclical? 1- Expenditure on…

A: A positive correlation between the value of a good, a service, or an economic indicator and the…

Q: real GDP

A: Calculate the GDP for Q1 = C + I + G + NX = 300+70+170+30 =570

Q: Alternative measures of the price level aim to improve on the CPI. Which of the following statements…

A: The consumer price index is an economic variable that measures the change in the general price level…

Q: Eleanor spends all of her money on comic books and donuts. In 2012, she earned $15.00 per hour, the…

A: x- comic book y- donut Budget constraint: 5x + 3y = 15

Q: Consider the following data on the GDP of Z-product: a) What was real GDP in 2012 measured in 2008…

A: GDP deflator is the ratio of nominal gdp and real gdp .real gdp is the product of base year price…

Q: The next four questions involve the following situation: Consider an economy with only three…

A: CPI refers to consumer price index. It is used to calculate inflation rate.

Q: An economy produces two goods, x, and y. A year ago the price of x was $4 and the price of y was $6.…

A: A year ago the price of goods x = $4 A year ago the price of goods y = $6 Today the price of goods x…

Q: 2. Table 1 shows the current GDP Data and real GDP for the year 2013 to 2015. Current GDP RM175…

A: year current GDP( bilion) true/right GDP(bilion) deflator inflation rate 2013 175 175 100   2014…

Q: f all quantities produced rise by 5 percent and all prices fall by 5 percent, why is nominal GDP…

A: Nominal GDP is the total value of goods and services that are produced in the economy within the…

Q: Question attahed in image

A: Gross domestic product is used by the economists and policymakers to  measure the total output…

Q: The relationship shown between the circular flow of goods and incomes is? a) Incomes and money b)…

A: Circular flow: The circular flow depicts the process that determines the national income and…

Q: 1. Look at the table below and the questions Iнк 2019 Bulan Rasi Desember 135, 16 135,16 2017…

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Q: If the prices of German made cars imported into the United States Fall, which answer is correct?…

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Q: A changing-basket price index (Passche index) like the GDP deflator tends to: a. underestimate the…

A: CPI is said as the consumer price index. It is a good measure of inflation. It measures the change…

Q: Because consumption is largely determined by_________ income, consumption is _________equally…

A: Answer: Correct option: a (permanent; more) Explanation: Permanent income refers to the average…