Explain in detail. Which of the following is/are true?Real GDPI. The GDP deflator is given by.X 100-Nominal GDPII. The percentage change of the CPI per unit time is a measure of the inflation rate of the economy.Select one:O A. Only I is true.O B. Only Il is true.O C. Both of the above are true.O D. None of the above is true. Which of the following is/are true?I. The consumer price index is a measure of the inflation rate of the economy.II. The real GDP is a good measure that captures the total quantities of final goods and services produced in theeconomy.Select one:O A. Only I is true.O B. Only Il is true.O C. Both of the above are true.O D. None of the above is true.

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Which of the following is/are true? Real GDP 1. The GDP deflator is given by. Nomínal GDP * 100- II. The percentage change of the CPI per unit time is a measure of the inflation rate of the economy. Select one: O A. Only I is true. O B. Only Il is true. O C. Both of the above are true. D. None of the above is true.

Which of the following is/are true? Real GDP 1. The GDP deflator is given by. Nomínal GDP * 100- II. The percentage change of the CPI per unit time is a measure of the inflation rate of the economy. Select one: O A. Only I is true. O B. Only Il is true. O C. Both of the above are true. D. None of the above is true.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Measuring The Cost Of Living

Section: Chapter Questions

Problem 3PA

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Which of the following statements are correct? Select one or more: O a. To find GDP at constant prices we can use the CPI to deflate GDP at current prices b. Inflation is measured by calculating the cost of a given bundle of goods. O c. The basket of goods used to calculate CPI inflation is tixed tor long periods O d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.
What likely occurred during 2018 if nominal GDP did not change and real GDP decreased, relative to the year 2017? Select one: O a. Total production of goods and services in the economy did not change in 2018. cross out O b. The economy experienced deflation during 2018. cross out cross out O c. The price level did not change during 2018. O d. Total production of goods and services in the economy increased during 2018. cross out cross out O e. The economy experienced inflation during 2018
In 2019 and in 2020, consumers in Dexter purchased only books and pens. 2019 2020 The prices and quantities for 2019 and 2020 are listed in the table. Item Price Quantity Price Quantity Books $4 6. $10 10 The reference base period for Dexter's CPI is 2019, and 2019 is also the year of the Consumer Expenditure Survey. Pens $6 $4 10 What is the inflation rate in 2020? The inflation rate in 2020 is percent. O A. 148.1 Ов. 2.1 OC. 80.0 D. 48.1 Click to select your answer. MacBook Air DII DD F12 F11 F10 F9 F8 20 F6 F7 F5 F4 F3 esc F1 F2 ! @ 23 $ 7 8 2 3 4 5 1 { P E R T Y Q W %3D tab L F G H S + II
Which of the following statements are correct? Select one or more: O a. To find GDP at constant prices we can use the CPl to deflate GDP at current prices O b. Inflation is measured by calculating the cost of a given bundle of goods. c. The basket of goods used to calculate CPI inflation is fixed for long periods O d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.
A real quantity is a quantity measured: Select one: O a. in physical terms. O b. using real prices. O c. by the average quantity. O d. in terms of current dollar value.
The reference base period is a period for which the is defined to equal Currently, the reference base period is 1982-1984. O A. inflation rate; 1 percent O B. PPI; 110 O C. interest rate; 1 percent O D. CPI; 100 Click to select your answer. DI
The CPI is more commonly used as a gauge of inflation than the GDP deflator is becaust the O a. GDP deflator cannot be used to gauge inflation. O b. CPI is easier to measure. O c. CPI better reflects the goods and services bought by consumers. O d. CPI includes more goods and services that the GDP deflator does. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
The CPI or Consumer Price Index measures O Inflation by monitoring the change in gas prices and food items O Real GDP by comparing average change over time in production of consumer goods and services. O Inflation by comparing the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. O Unemployment by comparing the production of consumer goods and services with potential production
Which of the following is/are true? I. One difference between the CPI and the GDP deflator is that imported goods are included in the CPI calculation but not in the GDP deflator calculation. I. Another difference between CPI and the GDP deflator is that capital goods produced by the domestic economy are included in the GDP deflator calculation but generally not in the CPI calculation. Select one: O A. Only I is true. O B. Only II is true. O C. Both of the above are true. O D. None of the above is true.
When economists speak of the CPI bias, they are referring to O A. the tendency for the CPI to overstate price changes. O B. the tendency for government officials to impose their values on the data. O C. errors in measuring the prices used in the CPI. O D. the tendency for the CPI to understate inflation. O E. the tendency for the CPI to understate price changes. Click to select your answer.
Suppose there's an unanticipated increase in the rate of inflation. Which of the following is likely to be true? Select one: a. Workers whose nominal wages are set at the beginning of the year are likely to suffer a decrease in real wages. O b. Workers whose nominal wages are set at the beginning of the year are likely to enjoy an increase in real wages. The real value of outstanding loan balances of debtors will increase. O d. Creditors who made loans based on the anticipated rate of inflation will earn a higher real interest rate than they expected.
Table 24-4 The table below pertains to an economy with only two goods - books and calculators. The fixed basket consists of 5 books and 10 calculators. Year 2006 2007 2008 Refer to Table 24-4. Using 2006 as the base year, the inflation rate is O a. 13.3 percent for 2007 and 14.8 percent for 2008. O b. 35 percent for 2007 and 14.8 percent for 2008. O c. 35 percent for 2007 and 55 percent for 2008. O d. 135 percent for 2007 and 155 percent for 2008. Price of books $24 30 32 Price of calculators $8 12 15