9. Alternative price indexes Because there isn\'t one single measure of inflatio
ID: 1131436 • Letter: 9
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9. Alternative price indexes
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP price index.
The GDP price index for this year is calculated by dividing the
9. Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP price index. The GDP price index for this year is calculated by dividing the using using by the and multiplying by 100. Indicate whether each scenario will affect the GDP price index or the CPI for the United States. Check all that apply. Shows up in the... GDP Price Scenario A decrease in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing An increase in the price of a Japanese-made television that is popular among U.s. consumers Index CPI Grade It Now Save & Continue Continue without savingExplanation / Answer
The GDP Price Index for this year is calculated by dividing the value of all goods and services produced in the economy this year using this years prices by the value of all goods and services produced in the economy this year using the base years prices and multiplying by 100.
Shows up in the
GDP Price Index
A decrease in the price of a Waterman Industries deep-water reel,which is a commercial fishing product used for deep-sea fishing will affect the GDPprice deflator as it indicates all domestically produced products.It does not affect CPI as the common consumers do not purchase it because it is a commercial product.
An increase in the price of a Japanese made television that is popular among US consumers affects the CPI as it includes allproducts purchased by US consumers. It does not GDP price index as GDP deflator includes only domestically produced products.
ScenarioShows up in the
GDP Price Index
CPI A decrease in the price of a Waterman Industries deep-water reel,which is a commercial fishing product used for deep-sea fishing Yes An increase in the price of a Japanese made television that is popular among US consumers YesRelated Questions
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