The consumer price index (CPI) is not used to convert nominal GDP to real GDP because the CPI calculation has measurement errors that are avoided in the real GDP calculation. the CPI includes prices of imports which consumers buy which are not relevant to GDP. the CPI does not track government spending, business investment or net exports. All of the answers are correct.

The consumer price index (CPI) is not used to convert nominal GDP to real GDP because the CPI calculation has measurement errors that are avoided in the real GDP calculation. the CPI includes prices of imports which consumers buy which are not relevant to GDP. the CPI does not track government spending, business investment or net exports. All of the answers are correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following is not counted as part of GDP? Group of answer choices the purchase of a snow plough by the city of Minneapolis. the unsold additions to inventory at an appliances store. the purchase of a loaf of bread by a sandwich store. the interest of 100 shares of AT&T stock purchased by your grandfather.
The GDP price index in the United States in 2016 was about 106, and real GDP in 2016 was $17.7 trillion (2012 dollars). Nominal GDP in 2016 is $ trillion.
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.
The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of 2012 dollars), and population (in thousands) of the United States in 1968, 1978, 1988, 1998, 2008, and 2018. The U.S. price level rose consistently over the period 1968–2018. Year Nominal GDP(billions of dollars) Real GDP(billions of 2012dollars) Population(thousands) 1968 $941 $4,792 200,745 1978 2,352 6,569 222,629 1988 5,236 8,866 245,061 1998 9,063 12,038 276,154 2008 14,713 15,605 304,543 2018 20,580 18,638 327,436 c. Calculate real GDP per capita for the following years. Round answers to the nearest dollar. Real GDP per capita in 1978:________ Real GDP per capita in 1988:________ Real GDP per capita in 2008:________ Real GDP per capita in 2018:________
I don't know how many of these you can answer, but these questions are just true/false questions and I've been struggling with them. The sale of GE Washing Machines to East Coast Appliance would not be counted in GDP. Julia Jones' monthly Social Security payment would not be included in GDP. If unsold inventories = $ 200 in 2019 and $ 300 in 2020, then the amount to go into GDP for this category for 2020 would be $ 500. Personal Consumption Expenditures account for about 25% of GDP. Spending on Consumer Durable Goods tends to be very stable from year to year. Sales of used goods are included in GDP at 35% of their original sale price. Investment in new technology (e.g., software) is included today in GDP in “Gross Private Investment.” Government purchases of goods and services at all levels of government (federal, state, and local) are included in GDP. Construction and sales of new housing would be included in “Personal Consumption Expenditures” in the durables goods…
GDP: Is a less- perfect measure of social well-being because it does not include exports and imports. Is the dollar value of all goods and services produced outside the boarders of a nation. Is the dollar value of all goods and services produced within the boards of a nation. Includes intermediate and final goods and services. All answers are correct
14. The optimal search rule suggests that buyers will a) set a reservation price for a car. b) shop for no more than six months for a car. c) shop for at least six months for a car. d) settle for the first car they see.
6
Question 15 Which of the following would be included in GDP, the purchase of staplers from Staples by a car dealership and by Carl for his kids to play with at home. Both are included in BDP Neither would be included in GDP Carl's purchase would be included but the car dealerships would not The car dealership's purchase would be included but Carl's would not Question 16 Which of the following would lead to growth in GDP Investment in plant and equipment by business Investments in stocks by your 401K Purchase of a home All of the above will lead to GDP growth
If Gdp deflator is equal at 120 it means that : 1- stagflation 2- deflation 3- inflation 4- stability
compare and contrast the calculations for the consumer price index and the GDP price index as measures of inflation.
Which of the following is NOT included in 2004's GDP? Group of answer choices The profit earned in 2004 from selling a stock that you purchased in 2001. The value of a personal computer produced in 2004 in the United States. The value of a car produced in 2004 in the United States and exported to England. The commission earned by an employment counselor in 2004 when she locates a job for a client.