Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 17, Problem 6SQ
To determine
The statement accuracy.
Expert Solution & Answer
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Which of the following statements is correct?
a.
The CPI can be used to compare dollar figures from different points in time.
b.
The percentage change in the CPI is a measure of the inflation rate, but the percentage change in the GDP deflator is not a measure of the inflation rate.
c.
Compared to the consumer price index (CPI), the GDP deflator is the more common gauge of inflation.
d.
The GDP deflator better reflects the goods and services bought by consumers than does the CPI.
As a result of a drought, prices and produced quantities in a country change as follows:
Assume that the economy produces and consumes only the above agricultural products.a) Calculate the nominal GDP and the real GDP for the year 2021 with the base year 2020.b) By how many percent have the prices of goods increased?c) Calculate the CPI for the year 2021 according to Laspeyres and Paasche.d) Describe the general differences between the CPI and the GDP deflator.
7) In 2010, a bottle of Coke cost $1. In 2020, it would cost $1.50. The CPI for 2020 was 260 and the
CPI for 2010 was 220. Which of the following statements is correct?
A) The real price of Coke stayed the same.
B) The real price of Coke decreased.
C) The real price of Coke increased.
D) The nominal price of Coke stayed the same.
Chapter 17 Solutions
Economics For Today
Ch. 17.2 - Prob. 1GECh. 17.2 - Prob. 2GECh. 17.2 - Prob. 1YTECh. 17.2 - Prob. 2YTECh. 17 - Prob. 1SQPCh. 17 - Prob. 2SQPCh. 17 - Prob. 3SQPCh. 17 - Prob. 4SQPCh. 17 - Prob. 5SQPCh. 17 - Prob. 6SQP
Ch. 17 - Prob. 7SQPCh. 17 - Prob. 8SQPCh. 17 - Prob. 9SQPCh. 17 - Prob. 10SQPCh. 17 - Prob. 11SQPCh. 17 - Prob. 1SQCh. 17 - Prob. 2SQCh. 17 - Prob. 3SQCh. 17 - Prob. 4SQCh. 17 - Prob. 5SQCh. 17 - Prob. 6SQCh. 17 - Prob. 7SQCh. 17 - Prob. 8SQCh. 17 - Prob. 9SQCh. 17 - Prob. 10SQCh. 17 - Prob. 11SQCh. 17 - Prob. 12SQCh. 17 - Prob. 13SQCh. 17 - Prob. 14SQCh. 17 - Prob. 15SQCh. 17 - Prob. 16SQCh. 17 - Prob. 17SQCh. 17 - Prob. 18SQCh. 17 - Prob. 19SQCh. 17 - Prob. 20SQ
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