1
answer
1
watching
498
views
rosedeer521Lv1
11 Dec 2019
The percent increase in the CPI from one year to the next is a measure of the
a) Inflation Rate
b) GDP Deflator
c) Unemployment Rate
d) Real Interest Rate
The percent increase in the CPI from one year to the next is a measure of the
a) Inflation Rate
b) GDP Deflator
c) Unemployment Rate
d) Real Interest Rate
Irving HeathcoteLv2
7 Apr 2020
Related textbook solutions
Related questions
|
YEAR |
P of Hot Dogs |
Q of Hot Dogs |
P of Hamburgers |
Q of Hamburgers |
| 2011 | $1 | 100 | $2 | 50 |
| 2012 (Base Year) | $2 | 150 | $3 | 100 |
| 2013 | $3 | 200 | $4 | 150 |
a. Calculate the CPI for 2011 and 2012. Using the CPI, calculate the rate of inflation between 2011 and 2012.
b. Calculate the GDP deflator for 2012 and 2013. Using the GDP deflator, calculate the rate of inflation between 2012 and 2013.
c. Recalculate the inflation rate between 2012 and 2013 using the CPI instead of the GDP deflator. In general, would the two methods yield the same inflation rate? Why?
