Which goods are supposed to be included in the CPI? a. All goods and services produced in the economy b. All the goods, but not the services, in the consumption component of the GDP accounts c. All goods and services in the consumption component of the GDP accounts d. All goods and services that typical consumers buy

Which goods are supposed to be included in the CPI? a. All goods and services produced in the economy b. All the goods, but not the services, in the consumption component of the GDP accounts c. All goods and services in the consumption component of the GDP accounts d. All goods and services that typical consumers buy

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 6PA

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The key difference between the GDP deflator and the CPI is that a. the GDP deflator reflects the prices of goods and services produced abroad, whereas the CPI reflects the prices of goods and services bought be a typical consumer b. the GDP deflator reflects the prices of all final goods and services produced domestically, whereas the CPI reflects the prices of goods and services bought by a typical consumer c. the GDP deflator reflects the prices of goods and services produced domestically, whereas the CPI reflects the prices of goods and services sold abroad d. none of the above
If a Pennsylvania gun manufacturer raises the priceof rifles it sells to the U.S. Army, its price hikes willincreasea. 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.
For CPI to be a useful price index, we need a. The foods and services included in CPI to be produced in the current year b. The goods and services included in CPI to be representative of a typical persons consumption c. The goods and services included in CPI to be produced within a country d. CPI to include all goods and services produced in an economy
What is the CPI and how is it calculated? The CPI is a A. measure of inflation O B. measure of the price level of all goods and services that are counted as part of GDP OC. list of the items that an average urban household buys and the percentage weight of total expenditure given to each item O D. measure of the average of the prices paid by urban consumers for a fixed basket of consumer goods and services
The economy of Sumer produces only three products: rice, pajamas, and beer. The base year is 2018. The quantities and prices of these products in 2018 and 2019 are shown in the table below. 2018 Price $5 Rice Pajamas Beer Total Quantity 460 160 95 Item Rice Pajamas Beer Total 15 Quantity 20 $ $ 2018 Nominal GDP $ d. The value of the CPI for 2019 is 2018 Price Quantity 520 175 100 a. Complete the table above. Calculate the nominal and real GDPs for the two years and enter the values in the table below. 2019 $ $ Nominal GDP Real GDP b. The value of the GDP deflator for 2019 is Answer to one decimal place. c. Supposing the average inhabitant of Sumer consumes 10 units each of beer and rice and 5 units of pajamas each year, complete the following table. 2018 Basket cost Price $5.7 14 23 2019 Price Answer to one decimal place. $ Real GDP 4
Fill in the blanks. 1. A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which it sells for $250. Taken together these two transactions contribute how much to GDP? 2. The CPI was 96 in 1982, and the CPI was 208 in 2010. How much money would you have needed in 2010 in order to buy what you could have bought with $500 in 1982 or to put it another way, what is the value of $500 earned in 1982 in 2010 dollars? 3. The consumer price index was 225 in 2006 and 234 in 2007. The nominal interest rate during this period was 6.5 percent. What was the real interest rate during this period?
Which is updated more frequently, the CPI market basket, the Consumer Expenditure Suvey, or the reference base period? A. The Reference Base Period B. The Consumer Expenditure Survey C. The CPI Market Basket and the Consumer Expenditure Survey D. The CPI Market Basket
The consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the same bundle of goods in some base year. price of the Calculate the price of a bundle containing 150 units of food, 40 units of utilities, 200 units of unexpected expenses, and 30 units of leisure activities in 2015, 2016, 2017, and 2018. Year 2015 is the base year. Prices of these goods for the years 2015, 2016, 2017, and 2018 are given below. Food Utilities Good Unexpected expenses Leisure activities Quantity Consumed 150 40 200 30 2015 Prices 2016 Prices HK$80 45 32 76 HK$86 62 38 81 Using the information above, calculate the following: The price of the bundle in 2015 is HK$ (Round your response to the nearest dollar.) 2017 Prices 2018 Prices HK$92 64 42 78 HK$96 66 54 74 VIDE AHT 10
1. Distinguish between nominal GDP and real GDP? 2.Explain briefly what the consumer price index tries to measure? 3. Describe three problems that make the consumer price index an imperfect measure of the cost of living.4. List two (2) differences between the consumer price index and the GDP deflator?
explain four main differences between the GDP Deflator and CPI, with one example for each difference.
2d. Calculate the GDP Deflator to the nearest tenth for 2014. 2e. What does your previous number mean? 2f. Calculate the CPI to the nearest tenth for 2014. (Use 2013 as the base year.)
Which goods are supposed to be included in the CPI? Group of answer choices All goods and services that typical consumers buy. All goods and services produced in the economy. All goods and services in the consumption component (C) of the GDP. All the goods, but not the services, in the consumption component (C) of the GDP.