Business, 22.07.2020 20:01 neariah24

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 for this year is calculated by dividing theusingby theusingand multiplying by 100. However, the GDP deflator reflects only the prices of all goods and services.
Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
GDP
Scenario Deflator CPI
An increase in the price of a Chinese
-made car that is popular among U. S.
consumers
A decrease in the price of a Waterman
Industries deep-water reel, which is a
commercial fishing product used for
deep-sea fishing, made in the U. S., but
not bought by U. S. consumers

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Alternative price indexes Because there isn't one single measure of inflation, the government and r...

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