QUESTION ANSWER OPTIONS... 1st Section BLANK#1 - (a) value of all goods and serv
ID: 1243403 • Letter: Q
Question
QUESTION ANSWER OPTIONS...
1st Section
BLANK#1 - (a) value of all goods and services produced in the economy in the base year; (b) value of all goods and services produced in the economy this year; (c) cost of a given market basket of goods and services
BLANK#2 - (a) the base year?s prices; (b) the year?s prices
BLANK#3 - (a) value of all goods and services produced in the economy in the base year; (b) cost of a given market basket of goods and services; (c) value of all goods and services produced in the economy this year
BLANK#4 - (a) this year?s; (b) the base year?s prices
2nd Section
BLANK#5 - (a) brought by consumers; (b) produced domestically
3rd Section
BLANK#6 - (a) will; (b) will not
BLANK#7 - (a) will; (b) will not
Explanation / Answer
The CPI for this year is calculated by dividing the EXPENDITURE ON A GROUP OF GOODS using A SET MARKET BASKET IN THIS YEAR by the SAME MARKET BASKET using THE BASE YEAR and multiplying by 100. The CPI reflects only the prices of all goods and services purchased by households. An increase in the price of a Japanese-made car that is popular among Americans consumers WILL NOT show up in the GDP deflator and WILL show up in the consumer price index for the United States.