What is the main reason why GDP deflator and CPI differ from each other? A) CPI includes investments, while GDP deflator doesn’t B) CPI includes durable goods, while GDP deflator doesn’t C) GDP deflator includes exports, but not imports D) CPI includes exports, but not imports
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- Which of the following acts are included in official gross domestic product (GDP) calculations? Dan is a volunteer coach for his daughter’s soccer team. Sue is a mother of two who has decided to withdraw from the labor force to care for the children until they are teenagers. Linda sees that her gutters are clogged with leaves and spends her Saturday cleaning out the gutters. Kathy is paid to be the assistant soccer at the local high school. Eric spends his Tuesday afternoons volunteering to read books to the children at the public library. Explain the answer with explanationsSurvey of Economics: GDP Accounting Worksheet Place the transactions below in their appropriate categories in the GDP and calculate the overall effect on the GDP of the United States. My cost for auto repairs and inspection. ($1,000) The Moon township buys rock salt to maintain the municipality’s roads in the month of February ($2,000) An RMU student goes to study in Ireland for a total cost of ($5,000) A U.S. citizen buys a refrigerator from General Electric (A US company). ($1800) A US retailer buys a new cash register ($1500) The cost of auto parts used to repair my car ($300) My total gasoline bill for a year ($1,500) A Chinese citizen buys a U.S. government bond ($5,000) A Landscaping firm’s gasoline costs for a year ($2,500): A School district buys new uniforms for its basketball team ($1100) I invest in a fidelity mutual fund ($2,000) My total food cost for a year ($8,000) An American bank loans a German citizen ($5,000) An American buys a sewing machine to produce clothing…In 2012 the nominal value for household spending on food and beverages was equal to $17593m and in 2021 it was $23888m. Using the most appropriate price index from the list below, calculate the percentage change in real household spending on food and beverages from 2012 to 2021 and answers the questions below. 2012 2021CPI (Food) 961 1057CPI (All groups) 949 1068PPI (Outputs - Food manufacturing) 1031 1171Import price index (food and beverages) 1436 1306 The index I used in my calculation was the? 1. CPI (Food) 2. CPI (All Groups) 3. PPI (Outputs) 4. Import price index
- In 2012 the nominal value for household spending on food and beverages was equal to $17593m and in 2021 it was $23888m. Using the most appropriate price index from the list below, calculate the percentage change in real household spending on food and beverages from 2012 to 2021 and answers the questions below. 2012 2021CPI (Food) 961 1057CPI (All groups) 949 1068PPI (Outputs - Food manufacturing) 1031 1171Import price index (food and beverages) 1436 1306 The percentage change in nominal household spending on food and beverages is equal to?In 2012 the nominal value for household spending on food and beverages was equal to $17593m and in 2021 it was $23888m. Using the most appropriate price index from the list below, calculate the percentage change in real household spending on food and beverages from 2012 to 2021 and answers the questions below. 2012 2021CPI (Food) 961 1057CPI (All groups) 949 1068PPI (Outputs - Food manufacturing) 1031 1171Import price index (food and beverages) 1436 1306 The percentage change in real household spending on food and beverages is equal to?GDP can be computed as the sum of A) all sales that have taken place in an economy over a period of time. B) the total expenditures of consumers and business over a period of time. C) the total expenditures of consumption, investment, and government expenditure on goods and services over a period of time. D) the total expenditures of consumption, investment, government expenditure on goods and services, and net exports over a period of time
- An increase in the price of Dell computers manufactured in Austin Texas and purchased by Americans will be reflected in: both the US GDP deflator as well as the US CPI. the US GDP deflator but not the US CPI. neither the US GDP deflator as well as the US CPI. the US CPI but not the US GDP deflator.What components of GDP (if any) would each of the following transactions affect? Explain. Uncle Tom buys a new refrigerator from a domestic manufacturer. Sidd buys a new house from a local builder. The Aladin family buys an old Victorian house from the Disney family. You pay a hairdresser for a haircut. Ford sells a Mustang from its inventory to the Cernogratz family. Ford manufactures a Focus and sells it to Avis, the car rental company. California hires workers to repave Highway 101. The federal government sends your grandfather a Social Security check. Honda expands its factory in Larkana.Consider the following data on U.S. GDP: Year GDP (Billions of current dollars) (Billions of 2012 dollars) 2014 17,521.7 16,899.8 2015 18,219.3 17,386.7 2016 18,707.2 17,659.2 2017 19,485.4 18,050.7 2018 20,494.1 18,566.4 Source: “National Economic Accounts.”U.S. Bureau of Economic Analysis. The percentage change in nominal GDP from 2017 to 2018 was . The percentage change in real GDP from 2016 to 2017 was . True or False: The percentage change in real GDP from 2015 to 2016 was higher than the percentage change in real GDP from 2016 to 2017. True or False
- The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions. 2010 2020 Total spending ($ million) 89 104.12 Local GDP ($ millions) 110 134 Population 50,000 56,275 CPI deflators (2012=1) 0.96 1.05 Calculate % change for City A’s total spending from 2010 to 2020 in current dollars. *Results round to the nearest 2 decimal places. Calculate % change for City A’s total spending from 2010 to 2020 in constant dollars. *Results round to the nearest 2 decimal places. Why does % change calculated from constant dollars differ from % change calculated from current dollar? Calculate per capita spending in 2010 and 2020, respectively, using constant dollars. *Results round to the nearest dollar. 2010 per capita spending: 2020 per capita spending: Calculate the compound annual growth rate of per capita spending from 2010 to 2020…The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2018. 2018 GDP Scenario Included Excluded Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2018. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2018. (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.) Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 27, 2018. Roadway Motors imports the convertible into the United States on May 18, 2018. The Jones family buys an antique silver platter at an auction in upstate New York on March 27, 2018. Zippycar, a U.S.…In 2012 the nominal value for household spending on clothing and shoes was equal to $5013m and in 2021 it was $7036m. Using the most appropriate price index from the list below, calculate the percentage change in real household spending on clothing and shoes from 2012 to 2021 and answers the questions below. 2012 2021CPI (Clothing) 961 1057CPI (All groups) 949 1068PPI (Outputs - Clothing and textiles) 1031 1171Import price index (Clothing and textiles) 1436 1306 The index I used in my calculation was the (Select one) (CPI (clothing)/CIP (all groups)/ PPI Outputs - Clothing and textiles) /or Import price index (Clothing and textiles). The percentage change in nominal household spending…
