Ask Question
BusinessBusiness
2 June, 04:05

An increase in the price of imported goods will show up in:

both the CPI and the GDP deflator.

neither the CPI nor the GDP deflator.

the CPI but not in the GDP deflator.

the GDP deflator but not in the CPI.

+3
Answers (2)
  1. 2 June, 06:12
    0
    Answer: c) The CPI but not in the GDP deflator.

    Explanation: A GDP deflator is a measure of the level of prices of all new, domestically produced finally goods. It is calculated by dividing the nominal GDP by the real GDP.

    A Consumer Price Index on the otherhand measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households

    The major difference between the CPI and GDP deflator is thay they Reflect a different set of prices. The GDP deflator does not include changes in the price of imported goods, while the CPI does not account for changes in the price of exported goods.
  2. 2 June, 07:16
    0
    The correct answer is letter "C": the CPI but not in the GDP deflator.

    Explanation:

    A deflator measures the changes in the value of money in relationship with fluctuations in prices and production. The main difference between the CPI (Consumer Price Index) deflator and the GDP (Gross Domestic Product) deflator is that the first measures the price of goods and services bought by consumers whether imported or not while the second measures the prices of all goods and services produced domestically.

    Thus, if imported products increase in price the CPI deflator will take it into account but not the GDP deflator.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “An increase in the price of imported goods will show up in: both the CPI and the GDP deflator. neither the CPI nor the GDP deflator. the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Relevant costs in a make-or-buy decision of a part include: A. setup overhead for the manufacture of the product using the outsourced part B. currently used manufacturing capacity that has alternative uses C.
Answers (1)
Suppose that the demand for loanable funds for car loans in the Milwaukee area is $12 million per month at an interest rate of 10 percent per year, $13 million at an interest rate of 9 percent per year, $14 million at an interest rate of 8 percent
Answers (1)
Ivonne has bought shares of RIO, Inc. stock for $25.00 per share. She expects a 1.00 dividend at the end of this year. After 2 years, she expects to receive a dividend of $1.25 and to sell the stock for $28.75.
Answers (2)
N the event of a fire, what is the best way to determine if a door is safe to open? a. Avoid touching it except to kick it open b. Check it for heat with your forearm c. Check it for heat with the back of your hand d.
Answers (1)
What should you do with your paycheck stub? Send it to the IRS. Give it back to your employer. Save it for your records.
Answers (2)
New Questions in Business
A production line at V. J. Sugumaran's machine shop has three stations. The first station can process a unit in 5 minutes.
Answers (1)
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitutes one product for another?
Answers (1)
Taylor product inc. distributed 100 million coupons in 2016. the coupons are redeemable for 30 cents each. taylor anticipates that 70% of the coupons will be redeemed. the coupons expire on december 31, 2017.
Answers (1)
What is a goal of federal minimum wage who benefits from it?
Answers (1)
ABC Hotels, Inc. has signed a service outsourcing contract with XYZ Rooms, Inc. for $5 million, which was received in cash at contract inception.
Answers (1)
Home » Business » An increase in the price of imported goods will show up in: both the CPI and the GDP deflator. neither the CPI nor the GDP deflator. the CPI but not in the GDP deflator. the GDP deflator but not in the CPI.
Sign Up Forgot Password?