Business, 06.05.2020 04:03, letdou2670
A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
Karaoke Machines
CDs
Quantity Price Quantity Price
(Dollars) (Dollars)
2017 10 20 50 13
2018 15 30 60 15
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2017 as the base year, and fix the basket at 1 karaoke machine and 5 CDs.)
Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is . (Note: Again, use 2017 as the base year.)
Which of the following statements is correct? Check all that apply.
a. The GDP deflator holds the basket of goods and services constant.
b. The CPI holds the basket of goods and services constant.
c. The inflation rate in 2018 is the same using the two methods.
Answers: 2
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A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke...
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