Business, 23.04.2021 16:00 MidnightDuel
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 hovw 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 deflator for this year is calculated by dividing the using by the using and multiplying by 100.
However, the CPI reflects only the prices of all goods and services .
Indicate whether the price change described in each scenario may affect the GDP deflator or the CPI for the United States.
Scenario Shows up in the...
GDP Deflator CPI
A decrease in the price of a Treewood handsaw, a popular chainsaw manufactured by Harvestwood Equipment in Bottleneck Springs, Arkansas
An increase in the price of a Chinese-made phone that is popular among U. S. consumers
Answers: 2
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Alternative price indexes Because there isn't one single measure of inflation, the government and re...
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