Business, 29.07.2020 04:01 percent74

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 deflator for this year is calculated by dividing the
using by the
using and multiplying by 100. However, the CPI reflects only the prices of all goods and services
Indicate whether the price change described in each scenario may affect the GDP deflator or the CPI for the United States.
Scenario Show up in the..
GDP Deflator CPI
An increase in the price of a Japanese-made phone that is popular
among U. S. consumers
A decrease in the price of a Fisher King deep-water reel, a popular
recreational fishing product built in Rarington, Indiana

Answers: 1

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

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