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 deflator.
The GDP for this year is calculated by dividing theusingby theusingand multiplying by 100. However, the GDP deflator reflects only the prices of all goods and services.
Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
GDP
Scenario Deflator CPI
An increase in the price of a Chinese
-made car that is popular among U. S.
consumers
A decrease in the price of a Waterman
Industries deep-water reel, which is a
commercial fishing product used for
deep-sea fishing, made in the U. S., but
not bought by U. S. consumers
Answers: 2
Other questions on the subject: Business
Business, 21.06.2019 20:20, allysongonzalezlove0
while setting up his new office, an attorney ordered thick, frieze carpets for the floor. however, the building inspector had him remove the expensive carpeting. the building inspector stated that according to federal regulations, the office must be wheelchair accessible as it is a public area. he further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. this scenario illustrates how a company is influenced by the component of its specific environment.
Answers: 2
Business, 22.06.2019 21:00, crazylogic963
China's new 5 percent tax on disposable wooden chopsticks, reflecting concerns about deforestation, has been praised by environmentalists. the move is hitting hard at the japanese, who consume 25 billion set of wooden chopsticks annually. almost all of the chopsticks used in japan come from china. the reuirements for chinese manufacturers of wooden chopsticks to pay the 5 percent tax is a factor in their external environment.
Answers: 3
Business, 22.06.2019 23:00, HockeyBlockpk7039
Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?
Answers: 2
Business, 24.06.2019 01:30, joannegrace4898
The group of accounting educators who offer their opinions about proposed fasb statements, after research has been done to determine the possible effects on financial reporting and the economy, is
Answers: 2
You know the right answer?
Alternative price indexes
Because there isn't one single measure of inflation, the government and r...
Questions in other subjects:
Computers and Technology, 09.10.2019 20:00
