MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 7, Problem 9SQ
To determine
The real income of the economy.
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An increase in the price of imported goods will show up in:
Select one:
a. the CPI but not in the GDP deflator.
b. the GDP deflator but not in the CPI.
c. both the CPI and the GDP deflator.
d. neither the CPI nor the GDP deflator.
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
Jatinangor town idolizes the TV show Koplo Pantura. All they produce and consume are karaoke machines and CDs in the following amounts:
(ANSWER C)
a. Using a method similar to the CPI, compute the percentage change in the overall price level. Use 2017 as the base year and fix the basket at 1 karaoke machine and 3 CDs.
b. Using a method similar to the GDP deflator, compute the percentage change in the overall price level. Also use 2017 as the base year
c. Is the inflation rate in 2018 the same using the two methods? Explain why or why not.
Chapter 7 Solutions
MACROECONOMICS FOR TODAY
Ch. 7.2 - Prob. 1GECh. 7.2 - Prob. 2GECh. 7.2 - Prob. 1YTECh. 7.2 - Prob. 2YTECh. 7 - Prob. 1SQPCh. 7 - Prob. 2SQPCh. 7 - Prob. 3SQPCh. 7 - Prob. 4SQPCh. 7 - Prob. 5SQPCh. 7 - Prob. 6SQP
Ch. 7 - Prob. 7SQPCh. 7 - Prob. 8SQPCh. 7 - Prob. 9SQPCh. 7 - Prob. 10SQPCh. 7 - Prob. 11SQPCh. 7 - Prob. 1SQCh. 7 - Prob. 2SQCh. 7 - Prob. 3SQCh. 7 - Prob. 4SQCh. 7 - Prob. 5SQCh. 7 - Prob. 6SQCh. 7 - Prob. 7SQCh. 7 - Prob. 8SQCh. 7 - Prob. 9SQCh. 7 - Prob. 10SQCh. 7 - Prob. 11SQCh. 7 - Prob. 12SQCh. 7 - Prob. 13SQCh. 7 - Prob. 14SQCh. 7 - Prob. 15SQCh. 7 - Prob. 16SQCh. 7 - Prob. 17SQCh. 7 - Prob. 18SQCh. 7 - Prob. 19SQCh. 7 - Prob. 20SQ
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Similar questions
- A painting from an Italian art gallery bought by a Canadian citizen a month ago, is considered when computing the current Canadian ________. An investment in some new machines, made by Roots, a publicly held Canadian brand, is taken into account when computing the current Canadian ________ but not the ________ Select one: a. CPI, GDP deflator, CPI b. GDP deflator, CPI, CPI c. CPI, CPI, GDP deflator d. GDP deflator, CPI, GDP deflatorarrow_forwardThe GDP Deflator reflects Select one: a.the prices of all final goods and services currently produced domestically, while the CPI reflects the price of a fixed basket of goods and services purchased by a typical consumer. b.the prices of all final goods and services currently produced domestically, as does the CPI. c.the price of a fixed basket of goods and services purchased by a typical consumer, as does the CPI. d.the price of a fixed basket of goods and services purchased by a typical consumer, while the CPI reflects the prices of all final goods and services produced domestically.arrow_forward
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