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2. 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 deflator for this year is calculated by dividing the However, the CPI reflects only the prices of all goods and services using using Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Scenario A decrease in the price of a Rivertown Ltd. depths dredger, which is a commercial mining product used for underwater by the and multiplying by 100. Shows up in the... GDP Deflator 0 CPI 0

2. 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 deflator for this year is calculated by dividing the However, the CPI reflects only the prices of all goods and services using using Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Scenario A decrease in the price of a Rivertown Ltd. depths dredger, which is a commercial mining product used for underwater by the and multiplying by 100. Shows up in the... GDP Deflator 0 CPI 0

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Measuring A Nation's Income
Section: Chapter Questions
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2. 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 deflator for this year is calculated by dividing the However, the CPI reflects only the prices of all goods and services using using Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Scenario A decrease in the price of a Rivertown Ltd. depths dredger, which is a commercial mining product used for underwater mineral extraction, made in the U.S., but not bought by U.S. consumers An increase in the price of a Italian-made furniture that is popular among U.S. consumers by the and multiplying by 100. Shows up in the... GDP Deflator 0 CPI 0
Transcribed Image Text:2. 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 deflator for this year is calculated by dividing the However, the CPI reflects only the prices of all goods and services using using Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Scenario A decrease in the price of a Rivertown Ltd. depths dredger, which is a commercial mining product used for underwater mineral extraction, made in the U.S., but not bought by U.S. consumers An increase in the price of a Italian-made furniture that is popular among U.S. consumers by the and multiplying by 100. Shows up in the... GDP Deflator 0 CPI 0
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