Why does the GDP deflator give a different rate of inflation than the CPI?
The GDP deflator and the CPI differ in two important ways. The GDP deflator uses as a basket all final goods and services produced in the domestic economy, while the CPI basket includes goods and services purchased by typical consumers. Therefore, changes in the price of imported goods affect the CPI, but not the GDP deflator. Also, changes in the price of domestically produced capital goods affect the GDP deflator, but not the CPI. Changes in the price of domestically produced consumer goods are likely to affect the CPI more than the GDP deflator because it is likely that those goods make up a larger part of consumer budgets than of GDP.
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Suppose it costs a farmer $1.00 to produce 1 unit of corn, $2.10 to produce 2 units of corn, and $3.30 to produce 3 units of corn. What's the average cost of producing 3 units of corn?
A) $1.00 B) $1.10 C) $2.10 D) $3.30
Everything else held constant, in the market for reserves, when the federal funds rate is 3%, lowering the interest rate paid on excess reserves rate from 2% to 1%
A) lowers the federal funds rate. B) raises the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
By the time the German hyperinflation following World War I ended in November 1923, the price level in Germany was ________ times higher than at the beginning of the hyperinflation
A) 1,000 B) 1 million C) 250 million D) 50 billion
The following chart indicates the reductions in total losses due to theft if a jewelry store hires additional security guards. Number Dollar Value of of Guards Thefts Prevented 1 150 2 240 3 310 4 360 5 400 6 430 If the security guards can be hired for $45 per day, how many guards should the shop hire?
A. 2. B. 3. C. 4. D. 5.